Exclusion and Restriction of Deduction in VAT: Impact on Business Expenses and Corporate Taxes

• The article 96 of the Law 37/1992 establishes that certain goods and services cannot be deducted from the VAT.
• This includes goods or services intended for customer, employee, or third-party care.
• The inability to deduct these expenses will result in a higher deductible acquisition cost in the IS.
• Company dinners will have the same consideration.

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.