- Advocate General’s Conclusion: Advocate General Kokott has determined that Spain’s exclusion of input VAT deductions for representation expenses does not violate EU law, affirming the legality of the Spanish legislation.
- Historical Context: The exclusion of VAT deductions for representation expenses was implemented for the first time with Spain’s accession to the EU on January 1, 1986, marking a significant change in the country’s tax structure, which had not previously included a similar consumption tax.
- Ongoing Dispute: The case arose from a dispute between Randstad España SLU and the Spanish tax authorities regarding the deductibility of VAT on business gifts, such as tickets for sporting events. The Advocate General’s opinion indicates that the deductibility of these expenses under Spanish income tax law is not relevant to the VAT deduction issue.
Source Taxlive
See also
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
- Podcasts & briefing documents: VAT concepts explained through ECJ/CJEU cases on Spotify
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