The article addresses the complex issue of VAT deductibility for toll expenses for taxable entities.
Legal Context
The opinion request relates to the deductibility of VAT incurred on tolls by a specific taxable entity. The relevant legislation is found in:
- Articles 19th and 26th of the VAT Code
- Paragraph of number 2 of article 19th of CIVA
Deduction Principles
According to the VAT Code, the taxable entity can deduct the tax incurred on the acquisition of goods and services used in their economic activities, provided that:
- The goods and services are used for taxable operations
- The operations are not VAT-exempt
Toll Expense Specificities
In the specific case of transport and business travel expenses, including tolls:
The deductibility treatment will depend on the activity framework and how costs are incurred.
Conclusion
The deductibility of VAT on tolls will be determined by:
- Nature of the economic activity
- Direct allocation to business
- Compliance with legal documentation requirements
When in doubt, always consult a tax professional for a specific case analysis.