Peppol deadline: 01-01-2026
00

Avoid fines

Peppol deadline: 01-01-2026
00

Avoid fines

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VAT penalty as an expense?

SDG
25/01/2026
Question

Can you record a vAT penalty as an expense? Yes, under which category does this fall?

You can record a vAT penalty in your accounts to balance your bank balance, but it is not tax deductible as a business expense.

Because the penalty was not paid to acquire or retain taxable income, it is not recognized by the tax authorities as a business expense.

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