- A subject can claim VAT deduction for preparatory activities even if the economic activity never starts.
- The goods and services must be necessary for the organization of the business or the planned economic initiative.
- The failure to use the goods or services must be due to causes beyond the buyer’s control.
- The Court of Cassation upheld this principle in its ruling.
- A medical company claimed VAT deduction for preparatory activities for a new clinic that never opened.
- The Regional Tax Commission granted the deduction.
- The Supreme Court ruled that the lower court did not properly apply the principles of VAT deduction for preparatory activities.
- The lower court only considered the preparatory nature of the activities without verifying if the company proved that the failure to start the activity was due to causes beyond its control.
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.
