How can you benefit from deductible VAT?

If the company:

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• is entered in the VAT register;
• keep detailed records of receipts and payments made;
• record deductible expenses in the accounts on the basis of documents
• supporting documents.

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It can deduct this VAT from the VAT it collects from its customers.

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What can be deductible?

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The tax code divides expenses into three categories:

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• deductible expenses - business travel and accommodation, wages and salaries, advertising and publicity expenses, marketing and other expenses necessary for the conduct of the business, interest and penalties
• non-deductible expenses - interest and fines imposed by the authorities, income taxes, sponsorships and other similar expenses;
• partially deductible expenses - social and protocol expenses, losses incurred by your business (due to stock depreciation, bad debts or other reasons), state aid expenses, but only to the extent that they are allowed by law.

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Which businesses can benefit from deductible VAT?

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Businesses in various industries can benefit from the VAT deduction.

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• Insurance companies can deduct VAT for expenses such as transport and office expenses.
• Service providers, such as copywriters, can deduct expenses related to attending trade fairs and conferences in their field or equipment used.
• Dropshipping businesses can deduct advertising and promotion expenses.
• Liberal professions, such as architects, lawyers and accountants, can deduct travel expenses and business trips.
• Food businesses can deduct expenses related to the supply of raw materials, employee wages and transport.
• Transport companies can deduct VAT for vehicles, fuel and maintenance. This VAT deductibility is often associated with a popular question: "What is deductible VAT for motor vehicles?". In general, VAT for a car can only be deducted if it is used for business purposes, either partly or in full, and the percentage of the deduction depends on the type of car and the specifics of the business.

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In order to qualify for deductible VAT, it is essential that you record all transactions carried out in your business and keep relevant documents such as invoices, receipts and tax receipts.

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With accounting software like Banqup, you can simplify the process and save valuable resources. Our platform allows you to create, send, receive, pay and archive financial documents from any device, making invoicing easy and efficient.

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Don't miss out on the benefits of deductible VAT - try Banqup today and take control of your finances!

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