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Practical Handbook VAT 2022


Provisional deductions are regularised by applying the definitive percentage corresponding to the first four calendar years of the usual tax year of the supplies of goods and services.

The final percentage to be applied to input VAT before operations are started is calculated as follows:

Final percentage:

(Transactions with the deduction right in the first 4 years ÷ Total transactions in the first 4 years) x 100

Correction calculation:

  • Based on the provisional deductions made.

  • The definitive deductions are subtracted by applying the definitive deduction percentage to the input tax before the transactions were carried out.

  • The difference, whether positive or negative, is the income or the additional deduction to be made.


(deductions made - final deductions) = (- additional deduction + complementary income)

The adjustment of the deductions for the capital goods should be extended to the following years under the capital goods adjustment procedure.

For these purposes, the deduction percentage applicable in the year in which the goods were acquired is replaced by the definitive deduction percentage corresponding to the first four years in which the goods or services are supplied as referred to in the above paragraphs.


Machinery purchased in year "n" before starting the deliveries of goods for the activity.The use of the machinery starts in year "n + 3" and the activity starts on 1 January of year "n + 2".

The provisional deduction of the machinery deducted in year n shall be adjusted on the basis of the overall deduction percentage of the first four years of the activity ('n + 2', 'n + 3', 'n + 4' and 'n + 5'). Furthermore, the deduction for capital goods will be adjusted over the remaining years, in this case years "n + 6" and "n + 7".