- Input VAT is fully deductible for goods/services used in taxable activities, including gifts, employee gifts, and scrap sales.
- For goods/services used in both taxable and non-taxable activities, only the portion related to taxable activities is deductible.
- Separate accounting is required for deductible and non-deductible input VAT; if not possible, deduction is based on the ratio of taxable revenue to total revenue.
- Output VAT applies to gifts, employee gifts, and scrap sales.
- Full input VAT deduction is allowed with separate accounting; otherwise, deduction is proportional to taxable revenue.
Source: fiscal-requirements.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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