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Practical Handbook VAT 2021

Pro rata rule

The Tax Agency has made the Pro-rata calculator" tool available on its website, allowing you to quantify the pro-rata, comparing results between general and special pro-rata and the annual correction to apply the final percentage.It also facilitates the annual adjustment and adjustments in the event of transfer as regards capital goods.

The pro rata rule applies when the taxpayer acquires goods and services that they use in transactions both with and without the right to deduct.

It does not apply to taxable sums for goods or services that are not directly and exclusively used for the activity (except for the special features already mentioned for capital goods) and to those excluded from the right to deduct (they are not deductible whatsoever).

The pro rata rule can be general or special.

  1. General pro rata
  2. Special pro rata