QUESTION: I heard from the media that a decree has been approved which allows for a 30% discount on supermarket expenses. I am a VAT paying electrician and I would like to know if you can clarify what expenses to consider when completing my VAT return.
ANSWER: The decree 8175/2022 recently signed by the executive modifies the article 19 of the decree 3107/19. The purpose of the amendment is to establish the VAT Credit for personal and professional service providers, providing some clarifications to the already existing concepts and establishing limitations to some that affect natural persons providing services who are not in an employment relationship.
TAX CREDITS
THE NUMBERS THAT HAVE NOT BEEN CHANGED ARE THE FOLLOWING:
1) Personal health, medicines, medical consultation, tax payer’s medical insurance. The new wording clarifies that if the cover includes other people, it can be deducted from the taxpayer’s share.
3) Training or specialization related to the service provided.
6) Office maintenance, renovation or repair.
10) Subcontracting of professional services intended exclusively for the provision of the taxed service.
THE NUMBERS THAT HAVE BEEN INCORPORATED ARE AS FOLLOWS:
2) Foodstuffs, including soft drinks, VAT credit up to 30% of the tax payer’s purchases.
9) Hiring advertising and marketing services
THE NUMBERS THAT HAVE BEEN CHANGED ARE THE FOLLOWING:
4) Electricity, aqueduct, sewerage, waste collection or telecommunications supply services for the provision of the taxed service. However, the new wording of the article also allows for the deduction of up to 50% of the VAT credit when the aforementioned concepts are intended for private and business use.
5) Office rental. The new formulation also provides for the deductibility of up to 50% of the VAT credit when these concepts are intended for private and business use.
7) Supplies, office furniture and supplies, servers, computer and telecommunications equipment, professional equipment and tools. The new formulation also provides for its maintenance.
8) Clothing suitable for the exercise of the profession or trade. The new wording adds “how to be”: coveralls, coveralls, special footwear, accident prevention protections.
11) The VAT credit deduction is maintained in the purchase of spare parts, lubricants, maintenance, repair and insurance of motor vehicles intended for the provision of the service, unless the condition that the vehicles are “intended exclusively for the provision of the service” has been eliminated. service”.
The deduction of 30% of the VAT tax credit for the purchase of motor vehicles required by law is maintained.
The decree clarifies that the aforementioned deductions must refer to income earned by the taxpayer and not by third parties unrelated to the tax obligation.
We advise you to request your invoices separating business expenses from those of family members for better control.
Lic. Lilian Maria Torres
