General pro rata

1. applies when the taxpayer jointly carries out operations with and without the right to deduction and the special apportionment is not applicable.

2. The incurred fees are deductible in the following percentage:

   Deduction percentage = (transactions eligible for deduction ÷ total transactions) x 100

   The result of this operation is rounded up to the nearest unit.

   Criteria to be taken into account in relation to subsidies:

   With the enactment of Law 3/2006, of March 29, all restrictions on the right to deductions as a result of the receipt of any subsidy, whether current or capital, are eliminated. However, subsidies that constitute full or partial compensation for the taxable transactions, and those linked to the price, will be taken into account for the calculation of the apportionment, including them in both the numerator and the denominator, depending on whether they form part of the taxable base of transactions that generate or do not generate the right to deduction.

   They are not counted in the numerator or denominator:

   1. Operations carried out from permanent establishments located outside the territory of application of the tax.

   2. The VAT installments that have been taxed on the operations carried out by the taxable person.

   3. Deliveries and exports of capital goods.

   4. Real estate or financial transactions that do not constitute the taxpayer's usual business or professional activity.

   5. Operations not subject to tax by article 7 of the VAT Law .

   6. Self-consumption due to change in destination of stocks that are now used as investment goods.

   7. Subsidies that do not form part of the tax base.

   The amount of the transactions is determined according to what is established for the determination of the tax base, even in exempt or non-taxable transactions.

   To carry out the temporary imputation the rules on the accrual of the tax apply.

   Calculation of input VAT that is deductible:

   1. Each calendar year, the definitive deduction percentage of the previous year is provisionally applied.

      The application of a different provisional percentage may be requested when circumstances arise that could significantly alter it.

      This request must be made within the following time periods:

      • In the month of January of the year in which it takes effect.

      • Until the end of the month following the one in which the circumstances justifying the request occur.

      In these cases, the quotas affected by the new provisional deduction percentage will be those borne from the date indicated by the Administration. In the event of authorization through positive silence, the new percentage will be applied to the quotas borne from the first day of the tax settlement period following the one in which the authorization was issued.

      The application is submitted to the competent body of the Tax Agency and is deemed to be granted once one month has passed (counted from when the application was entered into the register of the body competent for processing) without a resolution having been notified.

      In the first year of the exercise of the activities or in the case of deductions prior to the habitual performance of the delivery of goods or provision of services, the deduction percentage will be the one proposed by the taxpayer to the Administration, unless the latter sets a different one.

   2. In the last self-assessment, the taxpayer calculates the final deduction pro rata based on the operations carried out in the calendar year.

   3. The final deduction percentage is applied to the contributions incurred during the calendar year, and the deductions made must be regularised.