Deferment of VAT deduction information requirement for mixed and partial taxpayers

Since 2024, there has been a disclosure requirement regarding VAT deductions for mixed and partial taxpayers. This applies to taxpayers using the general ratio or actual use.

Mixed taxpayers applying the general ratio rate

For this group, the ratio in principle determines the right to VAT deduction. The ratio number is the ratio of turnover from deductible operations to the total amount of all operations of the economic activity.

Since Jan. 1, 2024, mixed taxpayers who deduct VAT based on the general ratio must report the preliminary and final ratio annually with the periodic VAT return.

Mixed and partial taxpayers applying actual use

An alternative route is to apply actual use to determine the right to VAT deduction. In doing so, the taxpayer must take into account the VAT levied on goods and services that:

• used exclusively for taxable transactions
• be earmarked exclusively for exempt operations
• be used for both taxable and exempt transactions

Since Jan. 1, 2024, this target group must communicate certain information annually with the periodic VAT return.

Tolerances in 2024

The Administration recently published a tolerance regarding disclosure requirements for mixed and partial taxpayers applying the general ratio or actual use. What tolerances should you take into account?

General postponement until no later than Aug. 9, 2024

Initially, affected VAT taxpayers had to provide the requested information by April 20, 2024 at the latest (or June 20, 2024 for mixed taxpayers who were already applying actual use by Dec. 31, 2022).

These deadlines are pushed back to the deadline for filing the periodic VAT return on:

• the second quarter 2024 (no later than July 20, 2024) or
• June 2024 (no later than July 20, 2024).

The postponement given during the summer vacation further extends the deadline to Aug. 9, 2024.

Specific deferral for actual use

A taxpayer applying actual use must add the following additional information to the periodic VAT return:

• the breakdown, as a percentage, of the VAT charged on transactions: * used exclusively for taxable transactions * used exclusively for exempt transactions * used for both taxable and exempt transactions
• the special ratio number(s)

This year, the VAT taxpayer may include this data on an estimated basis in the first return (= no later than August 9, 2024). The final figures must be communicated at the latest the periodic VAT return on:

• the third quarter 2024 (no later than Oct. 21, 2024), or
• November 2024 (no later than December 20, 2024).