Possibility of Deducting Supported VAT Fees through Late Declarations – TEAC’s New Ruling

• The Central Economic Administrative Court (TEAC) has applied the recent Supreme Court ruling and now considers the right to deduct VAT paid as a right, not an option.
• This means that taxpayers can submit requests to rectify previously filed tax returns to increase the deduction of VAT paid, as long as it is within the 4-year time limit.
• This change in TEAC’s criteria can have a significant impact on companies when they realize that they cannot deduct certain VAT paid.
• In a recent case, a taxpayer received a refund of over 1 million euros through this new interpretation.

Source: audiconsultores-etlglobal.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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