When Product Spoils: How to Substantiate Food Losses with Certified Photos

In certain sectors, losses due to damage or expiry are inevitable. Perishable foods that lose freshness before reaching the point of sale, products that pass their best-before date, broken packaging that compromises product safety, or goods that must be withdrawn for failing to meet proper storage conditions. Each of these losses entails an economic hit, and also a tax challenge. When it comes time to file the year-end return, the tax authority may require proof that those losses actually occurred. A simple photo or internal report rarely suffices. In tax matters, what counts is not what happens, but what can be proven.

What the Law Says About Deductible Losses

Article 10 of the Corporate Income Tax Law requires that expenses be real, recorded in the accounts, and duly substantiated. Likewise, Article 105.1 of the General Tax Law makes clear that the burden of proof lies with the taxpayer. This means that losses arising from expiry, breakage, or deterioration can be treated as deductible, provided they can be properly documented. Otherwise, the tax authority may deem the evidence insufficient and deny the deduction.

Which Situations Generate Deductible Losses

In the food industry, the most frequent causes of loss are:

• Expired products or those nearing their cutoff date.
• Spoilage due to a cold-chain failure.
• Deterioration or mold in stored foods.
• Breakage, leaks, or impacts during transport or handling.
• Losses due to product recalls or mandatory sanitary destruction.

All of these situations are deductible if their reality and economic rationale are demonstrated. The difficulty lies precisely there: providing conclusive evidence of when and how the loss occurred.

The Problem: When the Evidence Falls Short

Many operators keep photos or internal reports to justify losses. But such evidence often lacks a verifiable date, geolocation, or authenticity guarantees. During an audit, the tax authority may argue that the photos could have been taken at another time or that the product does not correspond to the recorded inventory. Even when the loss is real, weak evidence can invalidate the deduction. That is why the key is to use certified electronic evidence that dispels any doubt about origin and integrity.

The Solution: Legally Valid Certified Photos

Certified photos turn an ordinary image into electronic evidence with full legal backing. GoCertius provides:

• Qualified time stamp (exact date and time).
• Geolocation of where the photo was taken.
• Digital fingerprint (hash) that guarantees no tampering.

When certification is issued by a qualified trust service provider such as EADTrust, in accordance with Regulation (EU) 910/2014 (eIDAS) and Law 6/2020, the photo obtains full evidentiary value. With tools like GoCertius, this certification can be done directly from a mobile device, instantly and without technical know-how. The result is robust evidence, legally backed and fully valid before the tax authority, insurers, or courts.

A Practical Example: From Warehouse to Tax File

Imagine a juice distributor that, after a refrigeration unit failure, detects that several batches have fermented and must be discarded. Before removal, the manager takes certified photos with GoCertius, which automatically record the date, location, and condition of the product. Those images are later attached to the internal report and the accounting records as evidence of the loss. Months later, if the tax authority requests justification for the losses, the company can submit the certified photographs as reliable evidence, without the need for expert reports or notarial acts. Transparent, straightforward, and legally compliant.

Digitization Is Also Legal

Digital transformation in the food sector is not only about automating processes or controlling inventory; it is also about digitizing evidence. Every kilogram of lost product must be properly documented and certifying that evidence is a direct way to protect value and avoid adjustments or penalties. In short, an image can substantiate a deduction—provided it is certified and legally valid evidence.

Conclusion

Food loss and product deterioration are a natural part of any business in the sector. But only those who substantiate their losses with solid evidence can successfully defend their deduction before the tax authority. With GoCertius, a photograph stops being a mere record and becomes legal proof.

Abou EADTrust

GoCertius is an application provided by EADTrust, a qualified provider of digital trust services. Visit us at www.eadtrust.eu