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VAT practical manual 2022.

General pro rata

  1. applies when the taxable person jointly carries out operations with and without the right to deduction and the special proportion is not applicable.

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

    Deduction percentage = (operations with the right to deduction ÷ total operations) x 100

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

    Criteria to take into account in relation to subsidies:

    With the approval of Law 3/2006, of March 29, all restrictions on the right to deduction as a consequence of the receipt of any subsidy, whether current or capital, are eliminated. However, subsidies that constitute total or partial consideration for the subject operations, and those linked to the price, depending on whether they are part of the the tax base of operations that do or do not generate the right to deduction.

    They are not computed 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 investment goods.

    4. Real estate or financial operations that do not constitute the usual business or professional activity of the taxable person.

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

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

    7. Subsidies that are not part of the tax base.

    The amount of the operations is determined according to what is established for the determination of the tax base, even in operations that are exempt or not subject to tax.

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

    Calculation of input VAT that is deductible:

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

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

      This request must be made within the following deadlines:

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

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

      In these cases, the fees affected by the new provisional deduction percentage will be those borne from the date indicated by the Administration. In case of authorization through positive silence, the new percentage will be applied to the contributions borne from the first day of the tax settlement period following that in which the authorization occurred.

      The request is made before the competent body of the Tax Agency and is deemed to have been granted once one month has passed (counted from when the application has been entered in the registry of the body competent for its processing) without a resolution having been notified.

      In the first year of carrying out the activities or in the case of deductions prior to the usual delivery of goods or services, the deduction percentage will be the one proposed by the taxable person to the Administration, unless the Administration sets one. different.

    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 paid during the calendar year and the deductions made must be regularized.


A company is dedicated to renting homes and business premises.

The operations carried out in year “n-1” have been the following:

  • Home rental: 12,000 euros
  • Rental of business premises: 32,000 euros

The operations carried out during year “n” have been the following:

  • Home rental: 20,000 euros
  • Rental of premises: 25,000 euros

The VAT borne in “n” for the expenses used in the properties (both homes and premises) has been 1,280 euros in the first three quarters and 160 euros in the fourth quarter. The rental of homes is an exempt transaction without the right to deduction, while the rental of premises is a subject and non-exempt transaction with the right to deduction.

The rental of homes and premises constitutes a single sector as it has the same group in the CNAE , the general pro rata rule being applicable (unless the special one is applicable).

Deductible input VAT

  1. The provisional pro rata percentage for year “n” is calculated based on the operations carried out in “n-1”:

    Pro rata percentage = (Operations with the right to deduction ÷ Total operations) x 100 = {Premises rental (32,000) ÷ [Premises rental (32,000) + Housing rental (12,000)] x 100} = (32,000 ÷ 44,000) x 100 = 72.72727%

    The applicable percentage is rounded up and will be 73%.

  2. Application of the percentage to input VAT to obtain the input VAT that will have been deducted in the self-assessments corresponding to the first three quarters: 1,280 x 73% = 934.40

  3. In the fourth quarter, the final deduction percentage in year “n” is calculated.

    Pro rata percentage = {Premises rental (25,000) ÷ [Premises rental (25,000) + Housing rental (20,000)] x 100} = (25,000 ÷ 45,000) x 100 = 55.5555%

    It is rounded up to 56%.

  4. Application of the percentage to input VAT to obtain the deductible input VAT corresponding to the fourth quarter: 160 x 56% = 89.60

  5. Regularization of deductions from previous quarters:

    • Deduction made: 1,280 x 73% = 934.40
    • Correct deduction: 1,280 x 56% = 716.80
    • Excess deduction: 217.60
  6. Deduction applicable to Q4 = 89.60 - 217.60 = - 128 euros of lower deduction or income.


    • Deduction for the first three quarters: 934.40
    • Fourth quarter deduction: - 128.00
    • Total: 806.40

    Total input VAT in “n”:

    • 1,280 + 160 = 1,440
    • 1,440 x 56% = 806.40 euros