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V1309-23 ·17 May 2023 ·consulta-vinculante Medium impact
Tax

Pro rata rule must be applied to deduct VAT when carrying out taxable and exempt activities

A commercial entity providing both VAT-taxable services and exempt educational services seeks clarification on its right to deduction. The DGT rules that, when performing operations both with and without the right to deduction, the entity must apply either the pro rata rule or the existence of differentiated sectors.

In 6 key points

How it affects those involved

This ruling clarifies the methodology for VAT deduction for businesses with mixed activities, reinforcing the necessity of using pro rata or sector differentiation to avoid incorrect deductions.

Lifecycle

2023-05-17PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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