Tue. Dec 1st, 2020

VAT is deductible when it appears on the invoice: A Small Talk

In principle, without an invoice that mentions VAT, no deductibility. This rule demonstrates, if necessary,

In principle, without an invoice that mentions VAT, no deductibility. This rule demonstrates, if necessary, the importance of formalism in tax law. The objective of these formal rules is to limit the practice of fictitious or convenience invoices.

Deduction Cases

No deduction can be made on the basis of an order form, an estimate, a so-called proforma invoice (which is not an invoice). The company must have the original invoice s corp tax calculator.

  • Value added tax is only deductible if it is mentioned on an invoice. There is therefore no question of calculating the deductible VAT from the price including all taxes or of taking the credit card tickets which can only serve as proof of payment.
  • The CJEU accepts that a taxable person who is not able to produce invoices within the meaning of the directive may produce other documents. It can do so on the basis of the principles of value added tax neutrality and proportionality. He must then prove that the substantive conditions for the right to deduct are met.

The only estimate by a legal expert of the deductible amount is not sufficient. It does not make it possible to prove that the value added tax was actually paid by the taxable person.

VAT will be the “star” of the next of Public Law explains why this tax is ineffective and how the State has reached the stage of collecting VAT which it must then reimburse by going into debt. Calculate the same for the perfect results now.

It will have to be the “star” of these tax bases. She has long shown signs of failure. And the mending and other tinkering carried out in the various finance laws have not made it possible to improve its operation and limit its “negative” effects on economic activity and the purchasing power of households.

VAT has never been neutral or efficient

At its institution, it already carried the seeds of its ineffectiveness: diversity of rates and exemptions. It has since evolved to become ubiquitous. Indeed, to collect a VAT which one must then reimburse while going into debt: it is nonsense, a fiscal heresy.

Obviously, for some taxes, there may be refunds, but if the amount to be refunded amounts to hundreds of millions of DH, then we must seriously worry. Indeed, in this case it no longer meets part of the definition of tax which is enshrined: “the tax is a deduction made definitively.”


Indeed, it is not a loan. Yet we are tempted to say that economic operators are not only intermediaries, responsible for collecting tax on behalf of the public treasury, but that they have become, by force of circumstances, the state financiers.

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