The Fiscal code requires taxpayers to compute and communicate the pro-rata percentage and its computation method until January 25th. This percentage has temporary use.
There is no standard statement, so the pro-rata notification for the current year can take the form of a letter.
According to the Fiscal Code, the temporary pro-rata to be used for 2019 will be the final one used for 2018 or an estimated pro-rata based on operations provided to be realized in the current year, with some specific exceptions.
The pro-rata is determined as the ratio between:
- the total amount, free of charge (VAT), but including direct cost subsidies, of transactions consisting of deliveries of goods and provision of services with the right of deduction, to the counter; and
- the total amount, free of charge (VAT), of the operations referred to at the previous paragraph and of the operations consisting of deliveries of goods and provision of services which do not allow the exercise of the right of deduction, to the denominator.
From the pro-rata computation the following items are excluded:
- the value of any supply of capital goods that the taxable person used in its economic activity;
- the value of any deliveries of goods or provision of services for self-use by the taxable person;
- the value of the operations listed under art. 292 par. (2), letter a), as well as real estate operations, if they are accessories to the main activity.
The adjustment is made in the VAT return for December, at row 33.