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A beverage company has requested clarification on whether it can deduct VAT for products (such as glasses, ice buckets, etc.) supplied alongside its drinks. The Directorate General for Taxes (DGT) distinguishes between whether these goods are part of the company's regular business activity, whether they constitute promotional items, or if they are considered business hospitality.
The ruling clarifies the criteria for VAT deduction on ancillary goods, distinguishing between business expenses, promotional tools, and hospitality, which affects how companies account for these costs.
The tax team reviews your specific situation.
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