Beatriz Argilés, partner in addwill’s Tax Department, gave the Wolters Kluwer Academy Talk on 3 November on “Deducting input VAT: subjective, objective and formal requirements”.
It was a hands-on session covering the requirements a business must meet to deduct the VAT it pays, and the adjustments the Spanish tax authorities make most often. She started with the basics: who is entitled to deduct, what happens to VAT paid before a business starts operating, and which transactions give rise to the right to deduct, and which don’t.
From there, she explained the difference between goods and services used directly and exclusively for business and those used only partly for it, with a particular focus on capital goods and vehicles.
She also went through cases where the law rules out or limits the deduction, such as food and drink, entertainment, and gifts and hospitality for clients. The final part was devoted to the formal requirements: the invoice as the document that supports the right to deduct, and the most common mistakes. All of it was illustrated with real-life examples.
Beatriz Argilés is a lawyer with over 20 years’ experience advising multinational companies on VAT.
Planning a new project or a significant transaction for your company? Get in touch with addwill’s tax team and we’ll help you set it up right from the start, so VAT doesn’t end up becoming a cost.