Mixed and partial taxable persons do not have a full right of deduction, but can only deduct VAT on their purchases to the extent that those purchases are used for outputs on which VAT is payable.
Partial taxable persons carry out:
- transactions that fall within the scope of VAT and
- transactions that fall outside the scope of VAT
Example: public bodies that, alongside their public tasks, also engage in commercial transactions, e.g. the provision of passenger transport or the letting of rooms.
Partial taxable persons
Deduction on the basis of actual use
Partial taxable persons always determine their right to deduct VAT on the basis of actual use (Article 45 of the Belgian VAT Code).