In the absence of specific measures in the context of the COVID-19 outbreak, we must therefore rely on the general VAT-regulation. The general VAT-rules provide a legal presumption that foresees a reversed burden of proof in favour of the VAT-authorities. This presumption implies that all goods that are purchased by a company are deemed to be sold with the application of VAT.
This presumption can be rebutted if the VAT-taxable person provides a counter evidence proving that the goods have not/could not be sold.
Anticipating on future VAT-audits, it is important to sufficiently document the destruction or the disposal of the unsellable goods. In the first place, correct stock records and inventories are important. This documents need to show the quantities of the destroyed or disposed products. In addition, the taxable person can prove that the goods were no longer saleable by means of photographs, invoices from waste processors, etc.
If you have any questions on this subject, please contact the authors of this article.