Conclusion:
- A taxable person can deduct input VAT paid for advertising
- when it constitutes a provision of services subject to VAT and
- has a direct and immediate link with one or more taxable operations or with the taxable person’s economic activity as a whole,
- as long as that with its overheads, without taking into account the fact that the price charged for such services would be excessive compared to a reference value defined by the national tax administration or
- that these services would not have led to an increase in turnover of said taxpayer.
Source Francisco Javier Sánchez Gallardo
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