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VAT practical manual 2022.


Taxpayers of VAT can subtract from the fees accrued for the operations they carry out, the fees they have borne in their acquisitions of goods and services or in their imports, provided that certain requirements are met. . This right to deduct input VAT constitutes a fundamental element in the tax's operating scheme.

In this section a series of essential points must be taken into account, such as:

  1. The requirements that must be met for VAT to be deductible.

  2. The birth and expiration of the right to deduct, that is, when the deduction can be made and from what moment VAT can no longer be deducted.

  3. The exercise of the right to deduct, or what is the same, how the deduction is made.

  4. The way to deduct when the taxable person carries out activities in different sectors.

  5. The input VAT that is deductible when the pro rata rule is applied.

  6. The regularization of deductions for investment assets. Investment assets are used in different years and the fee incurred in their acquisition must be deducted based on the use of these assets over the years of their use.

  7. The requirements that must be met to be able to deduct input VAT in preparatory or prior operations to the deliveries of goods or services that constitute economic activity.

  8. The rectification of deductions already made.

Each of these points is analyzed in more detail below:

  1. Requirements for the deduction
  2. When you can deduct
  3. How is the deduction carried out
  4. Deductions in separate sectors of the business or professional activit
  5. Pro rata rule
  6. Adjustment of deductions for capital goods
  7. Deduction of contributions borne or paid before commencing the usual course of deliveries of goods or provision of services
  8. Rectifying deductions