DATA EXCHANGE BETWEEN EXCEL AND SAP EASY AND FAST

 

SimDia2

VAT Pro-Rata Adjustment

Companies or institutions with ‘mixed businesses’ (that is, companies that carry out both operations that are subject to VAT and deductible, as well as operations that are tax exempted and/or not deductible) can only deduct VAT at a percentage corresponding to the volume of deductible operations. These companies therefore have to apply the pro-rata VAT method in order to determine tax deduction.