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Is the 2% limitation applied separately to expenses supported by a purchase act and a cash register receipt, or is it applied to both collectively?
Is the 2% limitation applied separately to expenses supported by a purchase act and a cash register receipt, or is it applied to both collectively?
Is the 2% limitation specified in Article 109.8 of the Tax Code applied separately to expenses documented by a purchase act and a cash register receipt, or to the combined total of both types of expenses?
The State Tax Service under the Ministry of Economy stated that, pursuant to Article 109.8 of the Tax Code, except for goods listed in Article 3.5 of the Law on Cashless Payments, precious stones and metals, products made from such materials, real estate, motor vehicles, and other movable fixed assets, the maximum amount of deductible expenses related to goods purchased either from individuals not registered as taxpayers under a purchase act or from taxpayers based on a cash register receipt meeting the requirements of Article 50.8 of the Tax Code is limited to 2% of the higher of the taxpayer’s annual income or expenses. Any amount exceeding this limit is not deductible.
In response to the inquiry, it was clarified that the 2% limitation stipulated in Article 109.8 of the Tax Code applies separately to expenses documented by a purchase act and separately to expenses documented by a cash register receipt. Accordingly, within the same calendar year, a taxpayer may deduct expenses of up to 2% of their income for purchases made under each of these two categories independently.
Is the 2% limitation specified in Article 109.8 of the Tax Code applied separately to expenses documented by a purchase act and a cash register receipt, or to the combined total of both types of expenses?
The State Tax Service under the Ministry of Economy stated that, pursuant to Article 109.8 of the Tax Code, except for goods listed in Article 3.5 of the Law on Cashless Payments, precious stones and metals, products made from such materials, real estate, motor vehicles, and other movable fixed assets, the maximum amount of deductible expenses related to goods purchased either from individuals not registered as taxpayers under a purchase act or from taxpayers based on a cash register receipt meeting the requirements of Article 50.8 of the Tax Code is limited to 2% of the higher of the taxpayer’s annual income or expenses. Any amount exceeding this limit is not deductible.
In response to the inquiry, it was clarified that the 2% limitation stipulated in Article 109.8 of the Tax Code applies separately to expenses documented by a purchase act and separately to expenses documented by a cash register receipt. Accordingly, within the same calendar year, a taxpayer may deduct expenses of up to 2% of their income for purchases made under each of these two categories independently.