- Distinction between representation and advertising expenses is critical for business taxation.
- Representation expenses are not deductible for VAT purposes.
- Advertising expenses require relevance for VAT deduction.
- Article 19-bis1 of DPR 633/72 states representation expenses are non-deductible except for items under 50 euros.
- Representation expenses can mask liberal donations or self-consumption.
- Criteria for representation expenses for VAT are the same as for direct taxes.
- Representation expenses include costs for promotional trips, events, and free goods or services.
- Travel, meals, and accommodation for hosting clients at exhibitions or company visits are not representation expenses.
- VAT is not deductible for representation expenses, regardless of income tax deductibility.
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.
