Conflicting issues in the deductibility of input tax payments in the value added tax

Abstract

The right to deduct input VAT is one of the basic pillars on which VAT is based, allowing the taxpayer to pay only for the added value introduced in each of the stages of production, transformation or commercialization of goods and services.
This right is conditioned to the fulfillment of material and formal requirements, to which can be added the subjective and temporal ones, so that only when these requirements are met can the right be exercised.
In the study of this matter numerous conflicting questions arise, both related to the adjustment or adequacy of the internal norm with that of the Union, as well as on the interpretation of some of the conditions required by our internal legislation.
In this commentary reference is made to some of these issues that are considered relevant, such as the acquisition of the status of taxpayer to exercise this right, the right to deduct when the input tax is applied to taxable and non taxable activities, the possibility or not of fully allocating the investment goods to the business assets, the deductibility of the input tax for expenses accessory to the investment goods, and the need for the foreseeable destination of the input tax to be that of applying it to a future taxable transaction that generates the right to deduct.