Pro rata deduction by financial institutions - gross margin or interest?

Journal
Amand, C.; Lenoir, V.
International VAT Monitor 2006 (Volume 17), No. 1
FormatPDF
EUR
40
| USD
45
(VAT excl.)

For the purposes of the "general pro rata", the interpretation of the concept of "turnover" affects the extent to which financial institutions are entitled to deduct input tax and, therefore, determines the final burden of the tax on the institutions in question. In this article, the authors summarize the pros and cons of application of the gross margin or gross interest in respect of credit transactions.