- The consultation involves a company that signed an adhesion contract with a beverage manufacturer to purchase a certain volume of products and promote the supplier’s brand.
- In exchange, the company will receive a monetary compensation equivalent to the outstanding amount of a bank loan related to the contract.
- The manufacturer is authorized to issue invoices on behalf of the company for the purchase and promotion commitment, with the VAT being accrued at the time of contract formalization.
- The company asked for clarification on the VAT accrual timing for the purchase and promotion commitment, and if it is possible to rectify incorrectly issued invoices.
- The tax authorities determined that the commitment to purchase products is a one-time transaction, while the promotion activities constitute a continuous service.
- VAT accrual follows specific rules depending on whether the operation is one-time or continuous, with separate accruals for each service provided.
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.
