(at1) Only possible for business purposes.

(at2) Only possible for restaurant meals for business purposes.

(at3) VAT is recoverable if the vehicle is a car for which an input VAT deduction is allowed (defined by the Ministry of Finance).

(at4) In some cases, a VAT deduction is not possible due to VAT-exempt services.

(be1) VAT on car-related expenses is recoverable up to a maximum of 50%. Depending on which method is used, the VAT deduction can range from 35% to 50%. The VAT deduction is 85% for light commercial vehicles.

(be2) VAT on catering costs incurred during conferences or on the rental of meeting rooms is not deductible.

(bg1) VAT on restaurant meals is recoverable only if the meals are not for representation purposes. bg2) VAT on taxi transport, car rentals, repairs and fuel are recoverable only if not related to the use of passenger cars.

(bg3) Local VAT applies to entry fees for training and conferences.

(bg4) Local VAT applies to purchases related to immovable property in Bulgaria (e.g. room rentals).

(ch) If the vehicle also is used for private purposes, a reduction of the input VAT deduction must be computed (see also specific refund conditions section “Eligibility for VAT refund”).

(cy1) The deduction will be granted for such expenses if they are incurred wholly and exclusively for business purposes and the invoices were issued in the name of the company.

(cy2) Local VAT will be applied on the entry fee where entry is considered as admission to a conference.

(cz1) VAT may be recovered only if the supply is used solely for business purposes.

(cz2) VAT may be recovered if the supply is used solely for business purposes. A proportional deduction is allowed if the supply is for both business and private purposes.

(cz3) The reverse charge applies if consultancy services are provided.

(de1) For business purposes.

(de2) If a car is used for business and private purposes, the vehicle must be used at least 10% for the business to be classified as business asset (Sec. 15(1)(2) GVATA). Generally, the input tax attributable to the rent and maintenance costs of a rented vehicle that the taxable person uses for business and non-business purposes must be divided into a deductible and a non-deductible portion (Sec. 15.23(7)(1) German VAT Application Decree). However, for reasons of simplification, the taxable person can deduct input tax from the rental and maintenance costs in the case of partial nonbusiness use of the vehicle (Sec. 15.23(7)(4) German VAT Application Decree. (de3) Input tax deduction for business events presupposes a prevailing business interest. An employer cannot deduct input tax for a team building event in a non-business location outside of working hours in case of a prevailing private benefit for the employees (German Federal Fiscal Court, decision dated 10 May 2023, V R 16/21).

(de4) VAT on fuel is 100% deductible for EU companies; input tax amounts attributable to the purchase of fuels by non-EU businesses are non-deductible if the non-EU businesses do not resell the fuels (Sec. 18(9)(7) GVATA amended by the Annual Tax Act 2024).

(dk1) VAT may only be recovered if the amount of the hotel accommodation (excluding meals or other services) is separately specified on the invoice.

(dk2) Only for business purposes.

(dk3) VAT generally cannot be recovered on car rentals, car repairs and diesel/ petrol in Denmark, although some exceptions apply (rental, repair and diesel for lorries and vans. Certain lines of business can recover 100% of the VAT on these expenses.

(dk4) In certain cases, bus services are liable to VAT. In this case, the VAT is deductible if the services were used in relation to fully VAT- taxable activities.

(dk5) If there is any private use, the VAT deduction will be based on an estimate. Special rules apply if the phone is a landline at the residence of the employee.

(ee1) Input VAT on all business-related expenses is deductible based on the relevant cost document. Input VAT on goods or services relating to the reception of guests or the provision of meals or accommodation for employees is not deductible.

(ee2) Input VAT on passenger cars and expenses related to these cars is 100% deductible only if sufficient evidence is provided that the vehicle is used exclusively for business purposes; otherwise, only 50% of the input VAT may be deducted.

(es1) If deductible for corporate and personal income tax purposes. The invoices must be issued to the company, not to the employees.

(es2) If deductible for corporate and personal income tax purposes. The invoices must be issued to the company, not to the employees. Expenses for which VAT is blocked for deduction: food and drinks to be freely given to employees or clients.

(es3) 100% is deductible if the car is used directly and exclusively for business activities. If not, and if the car is used by the company for more than one year, 50% is presumed to be used for the car and all related costs (petrol, maintenance, etc.), unless a higher/lower business use could be proved with due evidence. This is a very controversial matter (on input VAT and output VAT standpoint) and the criteria of the STA and Courts is constantly evolving. Hence a case-by-case analysis should be carried out.

(es4) Only based on invoices or simplified invoices, not on tickets and to the extent the expenses are deductible for personal and corporate income tax purposes.

(es5) Expenses for which VAT is blocked for deduction: entertainment and goods and services to be given for free to clients (i.e. as attention to clients employees). Promotional activities related to the presentation of new goods/services could be deductible if they primarily serve the purposes of the business activity.

(fi) Deductible only if acquired for taxable business purposes.

(fi1) Deductible only if not considered entertainment or the private use of employees/owners.

(fi2) Deductible only if the car is used strictly for business purposes.

(fi3) Fully deductible only if the mobile phone is purchased and used for business purposes. Private use of the mobile phone will be excluded from the VAT recovery.

(fr1) These expenses must be incurred for business purposes for input VAT to be recovered.

(fr2) VAT on lodging / housing services rendered for the security, safety and caretaking of work sites or business premises is recoverable.

(fr3) VAT on purchases / rentals of vehicles for the transport of freight or public transport is recoverable.

(fr4) French case law has restricted the possibility for a company to recover input VAT on restaurant expenses when the corresponding invoice does not make a clear reference to the name of the company and when the company grants a lump-sum to its employees for their restaurant expenses.

(fr5) This measure affects only fuel used for vehicles and machines that are excluded from the right to deduct VAT, and leased vehicles when the lessee cannot deduct the VAT relating to this rental.

(fr6) Specific mentions must be reported on the motorway ticket to enable VAT recovery.

(fr7) VAT can be recovered only if it has been correctly invoiced according to the VAT rules.

(gr1) Entry fees will be subject to VAT if the event takes place in Greece, irrespective of the place of establishment (Greek, EU, non-EU) or the VAT status of the attendees. If expenses incurred for the rental of space relate to the right to use a specific space/immovable property located in Greece, VAT will apply, also irrespective of the place of establishment (Greek, EU, non-EU) or the status (whether or not a VAT taxpayer) of the lessee. The VAT treatment of other services will be determined on a case-by-case basis (e.g. advertising or sponsorship services under the general B2B rule). The above services and any relevant input VAT incurred generally will be deductible for the organizer of the event, but for participants, it would have to be determined whether the deduction would be available. It is unclear whether all expenses related to exhibitions/fairs organized in Greece are fully deductible.

(gr2) VAT on accommodation costs are not deductible. Including incurred during a training seminar in Greece.

(hr1) Only possible for business purposes.

(hr2) 50% of the VAT charged on the leasing or purchase of passenger cars and related goods and services may be deducted. As an exception, 100% may be deducted if the car is purchased for prescribed activities (e.g. transport of passengers. car retail/wholesale, driving school, rent-a-car).

(hr3) VAT on hotel/accommodation and meals is not deductible when related to entertainment expenses.

(hr4) The admission to conference held in Croatia is subject to VAT. VAT is deductible only if the conference is attended for business purposes.

(hr5) If a regular toll, it is deductible if it relates to business purposes.

(hu1): 50% is deductible by law. In the case of using a road register, the VAT deduction can range up to 100%. 100% deductibility is also possible where at least 50% of the consideration due for the supply of services is included in the taxable amount of the mediated services supplied by the company (and verified).

(hu2) VAT on diesel is deductible for trucks if it is used for certain technological developments or included in the taxable amount of other goods supplied.

(hu3) In case of a business trip. The right to deduct VAT for daily commuting to a workplace is limited.

(hu4):VAT on motorway fees is deductible if it is acquired for the business purpose of the taxpayer and used in connection with a vehicle exceeding 3.5 t and is verified through documentation.

(hu5): If an event is verifiably business-related or for professional purposes, the VAT on the associated expenses is typically deductible since these are essential for the taxable activities of the company. However, in the absence of recharging, the pre-charged VAT on food/drinks, taxi services, parking, catering services, and entertainment services cannot be deducted.

(ic1) VAT may be recovered only if the supply is solely used for business purposes.

(ie1) Where a vehicle is first registered on or after 1 January 2009 with a level of CO2 emissions of less than 156g/km and used for business purposes for at least 60% of its total use, a maximum of 20% of the VAT incurred on the purchase, hiring, Intra-community acquisition or importation of the vehicle is deductible. Vehicles first registered on or after 1 January 2021 and with a level of CO2 emissions of less than 140g/km may reclaim a maximum of 20% of the VAT incurred if at least 60% of the vehicle's use is for business purposes and other conditions are satisfied.

(ie2) A conference/meeting may qualify as an event on which Irish VAT would be fully deductible. VAT on certain qualifying accommodation in connection with attendance at a qualifying conference also is fully deductible.

(it1) VAT on hotel accommodation is not deductible if it is related to entertainment expenses.

(it2) VAT on restaurant meals is not deductible if it relates to entertainment expenses.

(it3) VAT on training/conferences is not deductible if it relates to entertainment expenses.

(lu1) VAT is deductible only if it is correctly applied.

(lu2) The place of supply of a car repair in a B2B transaction is the place where the recipient is established, so no Luxembourg VAT should be applied.

(lu3) Only if Luxembourg VAT is correctly applied. (lv1) Input VAT is deductible only if the goods or services were acquired for (VAT- taxable) business purposes.

(lv2) input VAT is not deductible with respect to expenses related to the rental, maintenance or repair of a passenger car, i.e. (if the value of the passenger car exceeds EUR 50,000). Only 50% of the input VAT amount can be refunded for expenses related to the rental, maintenance or repair of a passenger car valued below EUR 50,000 where the car is used for VAT-taxable business purposes.

(lv3) Only 40% of input VAT is deductible for representation expenses; input VAT incurred on goods and services acquired for VAT-taxable business purposes is fully deductible.

(lt) Input VAT is deductible only if the goods or services were acquired for VAT taxable economic activity.

(lt1) Input VAT is not deductible in case expenses were occurred for entertainment purposes. However, 50% of input VAT could be deducted in case of representation events.

(mt) Input VAT deduction may be 'blocked' if this cost is considered to classify as hospitality.

(mt2) There is no VAT recovery on the rental of motor vehicles, vessels or aircraft or on the purchase of goods or services for repairing, maintaining and fueling thereof. Exceptions apply to motor vehicles, vessels and aircraft that meet specified criteria / are used for a specific purpose.

(nl1) Provided the invoice meets Dutch VAT invoice requirements and the goods/ services are not used for private purposes.

(nl2) The 84% is applied by the Dutch tax authorities as an internal practice (the private use of the car is presumed). If it can be established that the car is used only for business purposes, a full VAT deduction will be allowed.

(nl3) VAT cannot be recovered on entertainment exceeding EUR 227 per year per person.

(no) Expenses relating to car repairs and fuel are recoverable only if incurred in relation to a car hiring business, the sale of cars and transport services.

(pl1) The recovery of input VAT is limited to 50% in the case of cars used for mixed use purposes (i.e. both business and private use). Where cars are strictly used for business purposes, a full deduction is allowed. A full recovery of input VAT is possible for specific types of truck/cars used for the transport of goods/ persons listed in the Polish VAT Act (e.g. buses, lorries, etc.).

(pl2) In principle, VAT recovery is allowed but it may depend on the nature of the expense.

(pl3) In general, 100% input VAT recovery would apply, subject to certain restrictions. In some cases (conferences), a detailed analysis is required to assess the scope of input VAT recovery.

(pt 1) If the taxpayer is the organizer of an event, 50% of the VAT incurred on certain expenses can be recovered; if the taxpayer is a participant, 25% of the VAT can be recovered.

(pt 2) The leasing of an immovable property is subject to VAT in Portugal (under the specific location rule applicable to landrelated services). The general B2B rule will apply if the space is assigned with other supplies (having all the supplies equal importance).

(pt 3) In the case of access to training and conferences in Portugal, the transaction will be located in Portugal for VAT purposes. Participation fees paid for conferences is 100% recoverable. Under certain circumstances, VAT can be partially deducted (50%) of the following expenses related with the organization of events (if they are related to participation in events organized by third parties, the deduction of VAT could only have been made by 25%): transportation and business travel expenses of the company and its staff, including tolls; and, accommodation, food and beverage expenses. Besides, the VAT of expenses related to reception costs, including those relating to the reception of persons outside the company and expenses related with real estate or part of real estate and its equipment, intended mainly for the receptions can be partially deducted if related to the organization of events (on the proportion of 50%).

(ro1) VAT on the local acquisition, intra-community, import, rental or leasing of passenger vehicles and VAT on directly attributable costs (e.g. repair, maintenance, lubricants, spare parts, fuel) may be subject to a 50% limitation on the VAT deduction right.

(ro2) A deduction for entertainment services is only allowed f the cost is incurred for business purposes. A deduction on goods that are considered gifts is allowed up to RON 100/ gift. VAT is non-recoverable on tobacco and alcoholic drinks.

(si1) The reverse charge applies to space rentals.

(si2) Unless in relation to vehicles used for the transport of passengers and goods, leasing, renting and resale, vehicles used in driving schools for the provision of driver training and combined vehicles for carrying out an activity of a public nature and special line transport, as well as special vehicles exclusively adapted for the transport of deceased persons.

(si3) The reverse charge should apply for training-related services when these are not strictly entry fees.

(se1) Reverse charge applies on the provision of a stand location at a fair or exhibition site together with other related services to enable the exhibitor to display items, such as the design of the stand, transport and storage of the items, the provision of machines, cable laying, insurance and advertising;

(se2) With regards to meals, only a limited amount may be recovered if the meal is for business entertainment. The VAT calculated on a base amount of up to SEK 300 per person is recoverable. If the meals (12% VAT) also include alcohol (25% VAT), the VAT must be prorated but it is possible to use a standard amount of SEK 46 (provided the cost per person exceeds SEK 300 and the VAT amount is at least SEK 46). Other restaurant meals (e.g. for employees) generally are nonrecoverable items.

(se3) With regard to business entertainment expenses, for entertainment costs to be recoverable from a VAT perspective, the costs must be attributable to the VAT-able business, i.e. not considered a personal living cost for the employees etc. It is presumed that all costs are incurred as part of carrying out a VATable business operations. Different restrictions apply depending on the type of entertainment expense. For business gifts, the VAT calculated on a base amount of up to SEK 300 is recoverable.

(se4) Local VAT applies on entry fees to training/conferences open to the public. This means that those who have the opportunity, subject to availability, must be given access to the event against payment. This applies even if the event is only aimed at a certain target group, e.g. persons with special professional competence. An event whose content has been adapted to the buyer's wishes is not aimed at the public. Provision of such tailor-made arrangements shall be assessed on the basis of the main rule in art. 44 of the VAT Directive.

(sk1) If VAT relates to entry fees for training/conferences, local VAT will apply, and a deduction is allowed.

(uk1) A full deduction is allowed if VAT relates to the entertainment of employees or is for overseas customers and has a business purpose (only for entertainment of a basic nature).

(uk2) The 50% rule also applies to the short-term hire of a vehicle unless the hire period is for ten days or less and the car is specifically hired for business purposes. In such a case, a full input tax can be reclaimed.