How do I calculate the VAT to be deducted when I carry out transactions that have the right to deduction together with others that do not have the right to deduction?
If in your activity you carry out operations that have the right to deduction, together with others that do not have the right to deduction, you will only be able to deduct part of them, and you must apply the pro rata rule .
To calculate the pro rata, the following amounts must be divided:
Numerator:the amount of the supplies of goods and services during the calendar year giving rise to the right to deduction (only taxable amount, without VAT).
Denominator:the total amount of the supplies of goods and services during the calendar year, including transactions which do not give rise to the right to deduction.(only taxable base, excluding VAT).
The result is multiplied by 100.
The percentage thus obtained is rounded up to the nearest whole number.
The pro rata can be general or special.
The general pro-rata consists of deducting all VAT paid at the above rate.
The special pro rata involves deducting VAT paid on the purchase of goods and services according to their use, so that if the good is used in an activity that has the right to deduction, the VAT paid will be deducted in full, whereas if it is used in an activity that does not have the right to deduction, no VAT may be deducted.Last, if the good is used for both types of activity, the VAT paid will be deducted on the basis of the pro-rata percentage.
It is compulsory to apply the special pro rata when applying the general deduction exceeds the deduction resulting from applying the special deduction by 10%.
You can use the pro rata calculator to make your calculations.