Pro Rata Deduction of Input VAT: Actual Use vs. Turnover Method in Mixed-Use Cases

• The case concerns the pro rata deduction of input VAT for mixed-use goods and services.
• The default method for deduction is based on the turnover ratio (omzetmethode), unless actual use can be objectively and accurately demonstrated.
• The burden of proof for deviating from the turnover method lies with the party seeking to use the actual use method.
• The tax inspector applied the turnover method, but the taxpayer argues that actual use (based on office space and time spent on exempt activities) provides a more accurate basis for deduction.

Source: uitspraken.rechtspraak.nl

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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