Bulgarian Court Holds Input VAT on Supplies Not Directly Linked to Taxpayer's Business Not Deductible

The Bulgarian Supreme Administrative Court issued a decision on 14 March 2018 concerning whether services received must be directly related to business activities in order to claim a deduction for the input value added tax (VAT) on the services. The case involved a Bulgarian company that contracted with a supplier for research and consulting services for a planned investment in a livestock operation. When the company was invoiced for the services, 20% VAT was applied, which the company then c…