TEAC Confirms Indirect Estimation of Deductible VAT Requires Proof of Actual Tax Burden

• The TEAC allows for the estimation of VAT supported in indirect estimation procedures but requires proof of its effective impact.
• Without evidence, the Administration is not obliged to estimate in favor of the taxpayer.
• XZ SPAIN, S.L. was inspected by the AEAT for VAT from 2007 to 2010, revealing irregular accounting and double invoicing.
• The AEAT regularized VAT using indirect estimation, including both accrued and supported VAT.
• The taxpayer contested the assessment and penalty, arguing against the estimation of supported VAT and insufficient justification.
• The TEAC dismissed the appeal, confirming the assessment and penalty, stating that supported VAT can be estimated if effectively borne and some indication exists.
• The AEAT did not estimate additional supported VAT due to lack of evidence or real impact.
• Legal basis includes Article 158.4 LGT, Article 81 LIVA, and TJUE jurisprudence, requiring proof for deduction of supported VAT.
• Applicable regulations include Article 158.4 LGT, Article 81 LIVA, Article 105.1 LGT, and TJUE cases C-332/15 and C-664/16.

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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