If the choice to allocate to business is not made in time, the tax authorities may refuse to deduct VAT

The Court of Justice of the EU has ruled in cases C‑45/20 and C‑46/20 that it is not contrary to EU law that the German tax authorities can refuse to deduct VAT if a taxable person does not indicate in time whether a good is intended for business purposes.

Source: taxlive.nl

See also ECJ C-45/20 and C-46/20 (Finanzamt N) – Decision – Input VAT, allocation of mixed used purchases to the business