Account 44566 – Deductible VAT on other goods and services
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Account Description 44566
Account 44566 “Deductible VAT on other goods and services” is used to record the VAT (Value Added Tax) paid by the company when purchasing goods and services and which is recoverable from the tax authorities. Fixed assets are excluded.
More precisely, account 44566 allows you to record:Purchases of consumables, office supplies and small equipment ;
Overhead costs ( rent, transportation, insurance, maintenance, etc.);
Current services ( advertising, training, consulting, etc.).
This is a sub-account of account 4456 “Deductible turnover taxes”, which also includes the following accounts:
Account 44562 “VAT on fixed assets”;
Account 44568 “Taxes similar to VAT”.
Rules related to account 44566Accounting record
Deductible VAT on purchases of goods and services constitutes a receivable from the Public Treasury . Consequently, it is recorded as a debit to account 44566 “Deductible VAT on other goods and services”.
The conditions of deductibility
For VAT to be deductible, certain conditions must be met:
The company must be subject to the actual VAT regime (normal actual or simplified actual). It must neither be exempt from VAT nor be exempt from VAT;
Deductible VAT must be related to purchases of goods and/or services necessary for the operation of the business . Purchases made for personal purposes do not allow you to claim a VAT refund;
The company must be able to provide appropriate supporting documentation (invoices, purchase orders, etc.) to support any VAT deduction claim.
VAT is only deductible from the time it is due .
VAT refund
The company must deduct VAT when filing the VAT return . If the deductible VAT is higher than the collected VAT, we say that the company has a VAT credit . In other words, the tax authorities are liable for the tax.
In this case, the company can choose to:
Carry forward this tax credit to future tax periods;
Claim a refund of all or part of the VAT credit.
To obtain a VAT refund, she must then make a request to her SIE (Business Tax Service) at the time of declaration.
