- In a merger by absorption, the VAT effects arise when the merger is registered in the Mercantile Registry, even if accounting effects are set retroactively to an earlier date.
- A retroactive accounting date does not move the VAT effective date back to that earlier date.
- If the absorbing company starts carrying out exempt activities that do not entitle it to deduct input VAT, it must apply the pro rata deduction rules.
- The VAT deduction must be determined under the ordinary provisional/definitive pro rata mechanism; the ruling does not set a specific deductible percentage or require a quantified adjustment.
Source: allyon-etl.es
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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