- Flat-rate cost recognition does not apply to VAT.
- Costs must be proven to relate to taxable transactions.
- Inductive revenue reconstruction can legitimize flat-rate cost determination for direct taxes, according to Constitutional Court rulings.
- However, this determination does not automatically reflect VAT deductibility.
- The taxpayer must prove that the costs are attributable to taxable transactions actually carried out.
- The Court of Cassation ruled that flat-rate cost determination does not automatically apply to VAT deductibility.
- The taxpayer must prove that the costs are attributable to taxable transactions actually carried out.
Source: eutekne.info
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.
