- ECJ issued a new ruling on October 4, 2024, regarding the right to deduct VAT on goods provided free of charge to subcontractors.
- The ruling stated that the right to deduct VAT is allowed as long as the provision of goods does not exceed the necessary minimum for the taxable transactions of the taxpayer.
- The direct and strict connection between the acquisition of goods and taxable transactions must be established for VAT deduction.
- Taxpayers must document the purpose and scope of providing assets to subcontractors to ensure full VAT deduction.
- It is important to specify in contracts with subcontractors the scope and purpose of providing goods and their connection to the taxpayer’s taxable transactions.
Source: crido.pl
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.
