- Input tax is VAT on goods and services used for economic activities and is recoverable only if linked to taxable or exempt with credit supplies.
- Input tax related to exempt without credit supplies or out-of-scope activities is not recoverable.
- A 2025 judgment ruled that merely changing the intended use of immovable property does not justify full input tax recovery.
- Input tax recovery was allowed only for property units actually used for taxable rental activities.
- Penalties for overclaimed VAT were upheld, and the court ordered the assessment to be finalized within a set period.
Source: pwc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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