10/12/2013 PROFILE > Chef d'entreprise , Direction , Service comptable , Avocat

Can a company deduct VAT from its lawyer's fees?

In the event of criminal proceedings being lodged against a director, the company cannot deduct VAT from its lawyer's fees. Indeed, the "existence of a direct and immediate link between any given operation and activities in whole of the tax payer so as to determine if the goods and services were used by the latter "for its taxable operations", as defined by [Community VAT regulations], depends on the objective content of the good or service acquired by said party. "
However, the objective of these lawyer services is to avoid criminal sanctions against physical persons, managing a company liable for tax. They do not allow this company the right to deduct VAT in advance on services provided.