The taxpayer is entitled to offset VAT paid on purchase of goods and services used for business purposes against VAT charged on sales of goods and /or services. Taxpayers exempted from VAT on part of their sales are entitled to deduct VAT paid on a pro rata basis (i.e. the ratio between the turnover related to activities chargeable to VAT and the global turnover). If VAT paid on purchases exceeds VAT charged on sales, then resulting VAT credit can be carried forward. Refund of VAT is granted in specific circumstances.