- Legal and advisory costs incurred after the end of business relationships do not have a direct and immediate link to the already performed taxable outputs.
- Such post-termination expenses are treated as general overhead (common costs), not as input costs directly attributable to specific taxable sales.
- A direct link to the taxable outputs exists only if objective evidence shows the costs were part of the cost elements of those sales.
- As a result, only a proportional input VAT deduction is allowed, based on the general pro rata input tax allocation key.
Source: leitnerleitner.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.
