ECJ C-734/19 (ITH Comercial Timişoara) – Questions – Input VAT recovery for goods/services no longer used beyond taxpayer’s control

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  • For the first project, the applicant bought a piece of land on which it would construct a production hall for a producer of elevators. The producer would rent this for 10 years.
  • For the second project, the applicant purchased a plot of land and buildings (where the producer had its business).
  • Via these two projects, the applicant wished to build an office tower and shopping centers – and the producer would reduce its housing costs.
  • However, due to the economic crisis, the first project was shut down in 2008.  As a  result, the producer of elevators was forced to rent an alternative space.
  • The question is, among other things, whether a person that acquires a good or service for the purpose of providing a taxable activity is entitled to input VAT recovery, and if that right continues to exist even if that good or service at a certain point is no longer used for the original intended purpose due to circumstances beyond the control of the taxable person that occur after acquisition of the good or service.


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