| composite rate |
German law
The composite rate is the arithmetic means of calculating monthly option rates in the input tax correction phase (= year of initial use of an asset).
In this phase it is used as a basis for the deductible or non-deductible input tax amounts of the acquisition/production costs of an asset.
It is recalculated every month.
The composite rate in December of the calendar year in which it was initially used is kept as the base rate.