Using advertising on platforms such as Facebook and Instagram is extremely popular and seems convenient, or even inexpensive. However, it can cause problems.
Invoices issued by Facebook and Google, originating respectively from Ireland and the USA, must be included in special tax returns. Ignoring this obligation, often resulting from incorrect accounting interpretations, exposes entrepreneurs to the risk of inspections and penalties from the Tax Office, which has tools for automatically verifying this data.
While advertising expenses are tax-neutral for registered VAT payers and constitute tax-deductible costs, the situation is quite different for entities exempt from VAT.
In such a case, it is necessary both to pay VAT on advertising invoices and to include them among tax-deductible costs. Lack of knowledge in this area often leads to unintentional violations of tax regulations and unnecessary financial losses.