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Practical Handbook VAT 2021


Deductions before the goods and services actually start to be supplied, provisionally applying the percentage deduction proposed by the taxpayer to the tax authorities to the amounts paid, unless a different percentage is defined by the tax authorities.

The application for the provisional deduction percentage must be made when filing the census tax return concerning the start of activity. This application is not necessary when all the transactions to be carried out generate the right to deduct the input VAT.

The application is submitted before the competent body of the Tax Agency and is understood to have been granted after one month has elapsed (effective the date on which the application was included in the records of the body responsible for processing it) without a resolution having been communicated.