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A costume jewellery manufacturer asks whether they can deduct raw material purchases made online without an invoice. The DGT rules that for VAT purposes, it is essential to hold a legal supporting document, and for Income Tax, the expense must be correlated with income and duly justified by an invoice.
This ruling clarifies the strict documentation requirements for tax deductions, emphasizing that informal online purchases without valid invoices cannot be used to offset VAT or Income Tax liabilities.
The tax team reviews your specific situation.
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