Limitation of VAT deduction for mixed activities with occasional 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 when goods and services are related to exempt or non-taxable operations
• Special rules apply when a taxpayer carries out both taxable and exempt operations
• The deduction is calculated based on a percentage and applied to all VAT, not just on goods and services for mixed use
• The pro rata calculation 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 model 2024 need to be filled out to indicate the value of exempt operations and related purchases

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.

---

---