- The Spanish Supreme Court ruled that VAT on client entertainment and sports events is not deductible under Article 96.1.4 and 5 of the Spanish VAT Law.
- It confirmed this exclusion is compatible with EU law under the VAT Directive’s standstill clause.
- The decision follows the Court’s prior doctrine and the CJEU ruling in Randstad España (12/03/2026).
- The Court held that Spain’s rule was valid because it took effect on 1 January 1986, the date Spain joined the EU, without expanding the prior restriction.
- Randstad’s appeal was dismissed, and the lower court’s VAT adjustment was upheld.
Source: allyon-etl.es
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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