GlossaryEN1 min readUpdated: Jun 18, 2026

input tax apportionment

Input tax apportionment becomes necessary as soon as a business generates both taxable and exempt supplies and receives goods or services used for both activities.

Quick Answer

Last updated: 18 June 2026Published: 27 January 2026

Source: https://de.wikipedia.org/wiki/Vorsteuer

Category

Logistics Concept

Reading time

1 min

Words

100

Mentioned in

–

Definition & Explanation

Input tax apportionment becomes necessary as soon as a business generates both taxable and exempt supplies and receives goods or services used for both activities. The total input tax is split using a suitable allocation key – most commonly a turnover-based pro-rata ratio – to separate the deductible share from the non-deductible share. Only the portion attributable to taxable output may be reclaimed from the tax authority. The chosen key must be consistently applied, clearly documented, and reviewed at regular intervals, typically once a year. A significant shift in the revenue mix may require an interim revision of the ratio.

Next steps

Tools that match this term

Find HS codeDetermine the tariff number for customsOpen Calculate customs valueWork out import duties and customs valueOpen Compare IncotermsClarify duties, cost and riskOpen Calculate transit timeEstimate duration per transport modeOpen

Related Terms

You might also be interested in these terms

input VAT deduction procedure

A freight forwarder pays VAT on purchased cargo capacity, warehouse space, and vehicles—the input VAT deduction procedure allows t…

Learn more

input tax reduction

Businesses – including freight forwarders, carriers, and importers – must apply an input tax reduction whenever goods or services …

Learn more

input tax relief

Importers, freight forwarders, and trading companies rely on input tax relief to recover VAT paid on incoming supplies by offsetti…

Learn more

input tax neutralization

Unlike simple input tax relief, input tax neutralization is the systematic principle that ensures VAT does not compound across the…

Learn more

input VAT deduction rate

The input VAT deduction rate is the proportion of input tax that a business is legally entitled to recover from the tax authority.…

Learn more

VAT input tax correction / adjustment of input tax deduction

When the business use of purchased goods or services changes after the initial VAT return, VAT input tax adjustment steps in to al…

Learn more

Logistics knowledge straight to your inbox

Weekly: Top news, industry facts and insights from the world of logistics – free.

input tax apportionment

Next steps

Related Terms

input VAT deduction procedure

input tax reduction

input tax relief

input tax neutralization

input VAT deduction rate

VAT input tax correction / adjustment of input tax deduction

Logistics knowledge straight to your inbox

Community Questions & Answers