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VAT practical manual 2021.


The provisional deductions are regularized by applying the definitive percentage corresponding to the first four calendar years of the usual year of the deliveries of goods and services.

The final percentage to be applied to the VAT borne before the start of operations is calculated as follows:

Final percentage:

(Operations with the right to deduction of the first 4 years ÷ Total operations of the first 4 years) x 100

Regularization calculation:

  • It is based on the provisional deductions made.

  • The final deductions are subtracted by applying the final deduction percentage to the fees borne before carrying out the operations.

  • The difference, positive or negative, will be the income or complementary deduction to be made.


(deductions made - definitive deductions) = (- complementary deduction + complementary income)

The regularization of deductions corresponding to investment assets must be extended to subsequent years through the investment asset regularization procedure.

For these purposes, the deduction percentage applicable in the year of acquisition of the good is replaced by the definitive deduction percentage corresponding to the first four years of the supply of goods or services referred to in the previous paragraphs.


Machinery acquired in year “n” before starting deliveries of goods for the activity. The use of the machinery begins in year “n + 3” and the activity begins on January 1 of year “n + 2”.

The provisional deduction for machinery carried out in year “n” will be regularized based on the global deduction percentage of the first four years of carrying out the activity (“n + 2”, “n + 3”, “n + 4” and “n + 5”). In addition, the deduction for investment goods will be regularized during the remaining years, in this case, years “n + 6” and “n + 7”.