How can I know if the VAT on an invoice is not deductible VAT?
Posted: Sun Dec 22, 2024 4:49 am
correct accounting of expenses , it is important to know when we are dealing with a deductible VAT and when not, since all kinds of documents pass through the accountants' desk, including invoices from suppliers and creditors with their corresponding input VAT , but also others that look like them, such as expense receipts, restaurant tickets, fuel invoices where the name of the recipient company is not indicated, etc.
VAT neutrality is achieved by allowing business owners or professionals to deduct the amounts incurred when purchasing or importing goods or services, but it is important to know which VAT is deductible and which is not, since not all VAT incurred can be deducted .
Start of marked textShare! When can we deduct VAT from an invoice? Learn all the casesEnd of marked text
Deductible VAT, under what conditions can we apply it?
For input VAT to be qatar email list deductible, the following conditions must be met:
1. Expenses must be linked to the economic activity carried out
Therefore, it is necessary to distinguish between expenses linked to the economic activity of private individuals , which are often paid with company cards. For example, many of the expenses paid with the famous black cards , being in the private sphere, would not be deductible.
Here we mainly find two types of expenses , which usually generate many doubts when determining the deductibility of your VAT, which are:
Derivatives of the use of a vehicle
In this case, the deductibility of expenses related to the vehicle, such as fuel, tolls and parking in public car parks , will be conditional on the vehicle generating said expenses being considered an asset related to the economic activity carried out, for which its use must be necessary to obtain the income from the activity.
The following will not be affected:
Those that are used simultaneously for economic activities and for private needs , unless the use for the latter is accessory and clearly irrelevant in accordance with the provisions of section 4 of this article. In this regard, it is very important to bear in mind that the Tax Agency tells us that:
"Fixed assets acquired and used for the development of economic activity that are intended for the personal use of the taxpayer on non-working days or hours during which the exercise of said activity is interrupted shall be considered to be used for private needs in an accessory and clearly irrelevant manner."
Those that, being owned by the taxpayer, do not appear in the accounting or official records of the economic activity that the taxpayer is obliged to keep, unless proven otherwise.
Therefore, when recording vehicle expenses, in addition to the fact that they are related to the activity, we must know when and for what purpose they have been used , in order to determine whether the VAT on expenses such as fuel, tolls or parking is deductible as indicated in the binding consultation V0901-14 of April 2014. In this way, when proceeding to record these expenses in the accounting records, we must have the calendar at hand to see if any expenses are passed on from non-working days, which would not be deductible.
VAT deductible on travel expenses
Expenses for professional travel will be considered tax deductible when they are required by the development of the activity , and provided that they also meet other legal and regulatory requirements.
In the event that there is no connection or this is not sufficiently proven, these travel expenses cannot be considered tax deductible from the economic activity and, consequently, the VAT incurred cannot be deducted.
VAT neutrality is achieved by allowing business owners or professionals to deduct the amounts incurred when purchasing or importing goods or services, but it is important to know which VAT is deductible and which is not, since not all VAT incurred can be deducted .
Start of marked textShare! When can we deduct VAT from an invoice? Learn all the casesEnd of marked text
Deductible VAT, under what conditions can we apply it?
For input VAT to be qatar email list deductible, the following conditions must be met:
1. Expenses must be linked to the economic activity carried out
Therefore, it is necessary to distinguish between expenses linked to the economic activity of private individuals , which are often paid with company cards. For example, many of the expenses paid with the famous black cards , being in the private sphere, would not be deductible.
Here we mainly find two types of expenses , which usually generate many doubts when determining the deductibility of your VAT, which are:
Derivatives of the use of a vehicle
In this case, the deductibility of expenses related to the vehicle, such as fuel, tolls and parking in public car parks , will be conditional on the vehicle generating said expenses being considered an asset related to the economic activity carried out, for which its use must be necessary to obtain the income from the activity.
The following will not be affected:
Those that are used simultaneously for economic activities and for private needs , unless the use for the latter is accessory and clearly irrelevant in accordance with the provisions of section 4 of this article. In this regard, it is very important to bear in mind that the Tax Agency tells us that:
"Fixed assets acquired and used for the development of economic activity that are intended for the personal use of the taxpayer on non-working days or hours during which the exercise of said activity is interrupted shall be considered to be used for private needs in an accessory and clearly irrelevant manner."
Those that, being owned by the taxpayer, do not appear in the accounting or official records of the economic activity that the taxpayer is obliged to keep, unless proven otherwise.
Therefore, when recording vehicle expenses, in addition to the fact that they are related to the activity, we must know when and for what purpose they have been used , in order to determine whether the VAT on expenses such as fuel, tolls or parking is deductible as indicated in the binding consultation V0901-14 of April 2014. In this way, when proceeding to record these expenses in the accounting records, we must have the calendar at hand to see if any expenses are passed on from non-working days, which would not be deductible.
VAT deductible on travel expenses
Expenses for professional travel will be considered tax deductible when they are required by the development of the activity , and provided that they also meet other legal and regulatory requirements.
In the event that there is no connection or this is not sufficiently proven, these travel expenses cannot be considered tax deductible from the economic activity and, consequently, the VAT incurred cannot be deducted.