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Input VAT deduction on the basis of actual use: new rules from 2023

Businesses that carry out both VAT-taxed and VAT-exempt activities that do not generate a right of input VAT deduction (so-called mixed VAT taxable persons) can only recover part of the VAT charged on their costs. In principle, this right of deduction is calculated using the general pro rata method, which calculates the ratio of VAT-taxed turnover to total turnover.

Source BDO

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