Under EU VAT rules as implemented nationally, input VAT is VAT on business purchases that may be deducted when the relevant conditions are met. Paid VAT is not automatically deductible, nor is it always a final business cost.[1]
Assess business use and supporting records. Do not count deductible VAT both as product cost and a VAT deduction. Payment to a supplier and tax reporting are separate accounting events.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.