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 you carry out transactions that give entitlement to deduction, together with others that do not give entitlement to deduction, you can only deduct part of them, and apply the pro rata rule.

The following amounts must be divided to calculate the pro rata:

• Numerator: The amount of the deliveries of goods and services made during the calendar year that generate the right to deduction (only taxable income, without VAT).

• Denominator: The total amount of deliveries of goods and services performed during the calendar year, including transactions that do not generate the right to deduct. (Only taxable amount, without VAT).

The result is multiplied by 100.

The percentage thus obtained is rounded up to the nearest whole number.

The pro rata may be general or special.

The general pro-rata consists of deducting all VAT payments borne in the previous percentage.

The special proportional distribution means deducting VAT paid on the acquisition of goods and services according to their destination, in such a way whereas, if the asset is used in an activity that gives the right to deduction, the VAT paid will be deducted in its entirety, whereas if use in an activity that does not generate the right to deduction, you will not be able to deduct any payment. Finally, if the asset affects both types of activity, the input VAT will be deducted according to the pro rata percentage.

The special pro rata payment must be applied when the deduction exceeds 10% of the amount applied by the special tax return.

You have the pro rata calculator to make your calculations.