Input Supply Allocation and VAT Deduction Guidelines for Business and Non-Business Activities

• Input VAT deduction for LEPL must follow general provisions such as direct allocation and division of input VAT
• Non-business activities must be distinguished from business activities for input supplies
• Input VAT deduction is only allowed for supplies used for business activities, not non-business areas
• If a supply is used for both business and non-business areas, input VAT deduction is only allowed for the business portion
• Division of input VAT is required for supplies used for both business and non-business areas, following specific guidelines

Source: assets.kpmg.com

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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