Paying for something with the business card does not automatically make it deductible. For an expense to be deductible it must be related to the activity, properly supported and correctly recorded.
Many problems come from
- Mixing personal and business expenses.
- Keeping only till receipts without enough tax details: to deduct VAT you need an invoice showing the customer’s details.
- Deducting payments with no direct link to the activity.
Deducting without judgement may seem minor, until a tax audit arrives.
At AP Asesores we help you tell which expenses are truly deductible and how to document them properly.
Legislation: arts. 28 and 30 of Law 35/2006 on IRPF; art. 97 of Law 37/1992 on VAT; Royal Decree 1619/2012 (Invoicing Regulation).
