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VAT proportion

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by ​Maria Wośkowiak

30 January 2024


The VAT payer's fundamental right is to deduct input tax from output tax – as long as the purchased goods and services are used for taxable activities.
 
A VAT payer is entitled to deduct input tax according to a pre-calculated proportion in case he makes so-called mixed sales (i.e. taxable and tax-exempt) and at the same time is not able to allocate the purchased goods and services to respective transactions. 
 

How to calculate the sales proportion? 

 
The sales proportion should be calculated using the following formula:
 
  • numerator: annual turnover on taxable transactions;
  • denominator: total annual turnover (taxable and tax-exempt transactions).
 
The proportion may be avoided in certain very specific cases. 

In some other cases, it is possible to estimate the proportion. It no longer needs to be agreed with the revenue authorities and recorded since July 2023. 

It is, however, necessary to make an annual adjustment following the determination of the final proportion for the year in the JPK_V7 (SAF-T) for January or the first quarter of the following year. That proportion becomes the initial proportion for the year.
 
Have you got questions about VAT, the initial and final proportion? Contact our experts, who will be glad to respond to any concerns and provide comprehensive support.

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