Limitation of VAT deduction for mixed activities with exempt operations

• The right to deduct VAT is strictly linked to the nature of the operations in which goods or services are used
• The deduction is limited if the goods and services are related to exempt or non-taxable operations
• Special rules apply when a taxpayer carries out both taxable and exempt activities
• The deduction must be calculated based on the percentage determined by specific criteria
• The calculation of the pro rata does not apply in certain situations, such as occasional exempt operations by a taxpayer mainly engaged in taxable activities
• In case of such circumstances, specific boxes in the VAT form 2024 must be filled out to indicate the exempt operations and purchases related to taxable activities

Source: eutekne.info

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.

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