Pro rata

The rule that limits input-IGI deductions when an activity includes transactions both with and without a right to deduct.

If part of your activity does not carry a deduction right, you cannot deduct all input tax—only the proportion attributable to the activity that does.

An example

An entity carrying out both exempt and taxable activities may need to apply a pro-rata calculation.

The typical mistake

Ignoring the rule because the exempt activity is small. If the rule applies, it must be calculated; a small amount does not make it disappear.

How it appears in AndCompta

When you carry out transactions both with and without a deduction right, the input-IGI register keeps them separate from day one. Otherwise, calculating pro rata at year-end means reconstructing the whole year.

Where we explain it in depth

Related terms

This definition is general information, not tax or accounting advice. For your specific case, consult a professional and always check the official source.

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