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A commercial entity leasing warehouses and residential properties has enquired whether it may switch from the general pro rata rule to the special rule for VAT deduction purposes. The DGT has ruled that this is possible provided that all legal requirements and deadlines are met, although it cannot be applied retroactively.
Businesses involved in mixed activities (exempt and taxable) may benefit from a more accurate VAT deduction method by switching to the special pro rata rule, provided they comply with specific statutory conditions and timeframes.
The tax team reviews your specific situation.
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