BASQUE COUNTRY AND NAVARRE: You can request the common deduction for your differentiated sectors

When can we talk about differentiated sectors?

Your company carries out activities that constitute differentiated sectors if the following conditions are met:

● The deductible VAT percentage between the main activity and another activity carried out differs by more than 50 percentage points.

● The activities are different in the National Classification of Economic Activities (CNAE) at the three-digit level. Note that accessory activities with a turnover not exceeding 15% of the main activity and contributing to its performance are not considered differentiated.

How does the regime of differentiated sectors work?

Similarly to the special pro-rata. This means:

· The VAT incurred in the activities of each sector must be deducted independently, based on the deduction regime and the pro-rata percentage of each sector.

· The VAT incurred on goods used in common in both sectors must be deducted according to the company's general pro-rata.

How is this regime applied?

The regime of differentiated sectors is applied automatically.

So, how can the common regime be applied?

During the month of November, you can choose to apply for the following year a common deduction regime (such as the general pro-rata). To apply it in 2026, the deadline for application ends on December 1.

Keep in mind that it will apply until revoked or waived. However, if in a year the deductible VAT exceeds 20% of what would result with the regime of differentiated sectors, you must regularize the deducted VAT by applying that regime of differentiated sectors.

 

Our professionals will inform you in detail about the deduction regime for differentiated sectors.