Doctrine by topic · DGT Observatory

Pro rata rule: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Stable position High confidence 8 rulings · 2015–2023

Current position

The pro rata rule applies when the taxable person simultaneously carries out taxable transactions (including those at a 0% rate) and exempt or non-taxable transactions. The pro rata rule does not apply if the activities belong to differentiated sectors with deduction differences exceeding 50 percentage points. If only exempt or non-taxable transactions are carried out, there is no right to deduction nor application of the pro rata rule.

The DGT's position remains constant regarding the application of the pro rata rule in the coexistence of taxable and exempt transactions. The analyzed rulings do not show a doctrinal change, but rather apply the criterion to various scenarios such as catering services, association activities, or professional services. The doctrine is limited to confirming the cases of application and the exceptions for differentiated sectors.

Turning points

  1. V3617-15

    Establishes that if the deduction percentages of activities other than the main one differ by more than 50 percentage points, they are considered differentiated sectors and the pro rata rule does not apply.

Analysis based on 7 of 8 rulings with a stated position. Updated 1 October 2026.

Rulings on this topic

8
V2313-23 9 Aug 2023

Free legal aid and rental exemptions from VAT

SG de Impuestos sobre el Consumo
asistencia jurídica gratuitaoperaciones no sujetasexención de arrendamientoderecho a la deduccióncarácter indemnizatorio LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5.1.c
Affects CompanyExpat · Non-residentIndividual
V0111-23 1 Feb 2023

Zero-rated VAT supplies on basic goods allow for the deduction of input tax

SG de Impuestos sobre el Consumo
tipo impositivo del cero por cientoderecho a la deducciónoperaciones sujetas y no exentasregla de la prorrataproductos naturales LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 5.Uno
Affects CompanyExpat · Non-residentIndividual
V4324-16 6 Oct 2016

Children's camps subject to reduced VAT rate of 10%

SG de Impuestos sobre el Consumo
prestación únicatipo reducidoregla de la prorrataactividades exentassectores diferenciados LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5
Affects CompanyExpat · Non-residentIndividual

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