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VAT practical manual 2021.

Fees not deductible by law

Quotas should not appear among the exclusions and restrictions of the right to deduct.

The Law establishes that they cannot be deducted to any extent, except in the case of goods of exclusive industrial, commercial, agricultural, clinical or scientific application, or goods intended to be delivered or transferred for consideration or services received for be provided for consideration, by businessmen or professionals regularly dedicated to carrying out such operations, the fees borne:

  1. For travel or travel, hospitality and restaurant services, unless they are considered a deductible expense for the purposes of Personal Income Tax or Corporate Tax.

  2. In food, tobacco and beverages or entertainment shows or services.

  3. In jewelry, jewelry, precious stones, pearls and objects made with gold or platinum.

  4. In goods or services intended to serve clients, employees or third parties.

    They will not have this consideration:

    • Free samples and promotional items of little value.

    • Those intended to be delivered or transferred for use for consideration that, at a time after their acquisition, were intended for services to clients, employees or third parties.