VAT deduction guide for mixed and partial taxpayers: key principles and formalities explained

Taxpayers who engage in both taxable and exempt activities cannot fully exercise their right to VAT deduction
They can choose between the general pro-rata method or the actual use method for VAT deduction
The actual use method requires explicit request and electronic notification since January 1, 2023
In 2024, this requirement will also apply to taxpayers using the general pro-rata method
Both mixed and partial taxpayers must provide detailed information to the VAT administration annually
Taxpayers with limited VAT deduction rights need to take action
Key principles and formalities are summarized below

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.