Articles in the EU VAT Directive 2006/112/EC
Article 184
The initial deduction shall be adjusted where it is higher or lower than that to which the taxable person was entitled.
Article 185
1. Adjustment shall, in particular, be made where, after the VAT return is made, some change occurs in the factors used to determine the amount to be deducted, for example where purchases are cancelled or price reductions are obtained.
2. By way of derogation from paragraph 1, no adjustment shall be made in the case of transactions remaining totally or partially unpaid or in the case of destruction, loss or theft of property duly proved or confirmed, or in the case of goods reserved for the purpose of making gifts of small value or of giving samples, as referred to in Article 16.
However, in the case of transactions remaining totally or partially unpaid or in the case of theft, Member States may require adjustment to be made.
Article 186
Member States shall lay down the detailed rules for applying Articles 184 and 185.
ECJ Cases decided
- C-511/10 (BLC Baumarkt) – Germany may apply surface ratio for mixed-use VAT deduction
- C-234/11 (TETS Haskovo) – Demolition of buildings and replacement by new buildings does not give rise to a review of the VAT deduction
- C-257/11 (Gran Via Moineşti) – No VAT revision when demolishing buildings
- C-550/11 (PIGI) – Revision of the deducted input tax is possible in the event of theft
- C-622/11 (Pactor Vastgoed) – Revised VAT deduction that the supplier must repay cannot be levied from the customer
- C-107/13 (FIRIN) – No right to deduct the VAT on prepayment if supply did not happen
- C-438/13 (BCR Leasing IFN) – No deemed supply for VAT when leased cars cannot be repossessed
- C-332/14 (Wolfgang und Wilfried Rey Grundstücksgemeinschaft GbR) – Input tax deduction correction – Mixed Use buildings
- C-186/15 (Kreissparkasse Wiedenbrück) – Not obligation to apply the rounding rule of Art. 175(1) when the deductible part is calculated on the basis of one of the deviating methods
- C-229/15 (Mateusiak) – Cessation of the taxable economic activity, Supply of goods for consideration after adjustment period
- C-396/16 (T – 2) – Bad debts, VAT deduction upon homologation preventive agreement
- C-532/16 (SEB bankas) – Incorrect classification of land supply as “taxed activity” – Change of original invoice by supplier
- C-660/16 and C-661/16 (Kollroß) – Judgment – VAT deduction after payment without delivery
- C-140/17 (Gmina Ryjewo) – Input VAT deduction adjustment after change of use of capital goods
- C-364/17 (Varna Holideis)
- C‑201/18 (Mydibel SA vs Belgium) – Judgment – Input VAT, immovable property, sale and lease back
- C-661/18 (CTT – Correios de Portugal) – Adjustment of pro rata calculation
- C‑684/18 (World Comm Trading) – Judgment – Global rebates required local adjustments
- C-791/18 (Stichting Schoonzicht) – Dutch revision scheme for capital goods is in line with the EU VAT Directive
- C-374/19 (Finanzamt Bad Neuenahr-Ahrweiler) – No Right to deduct VAT in case building is only used for exempt transactions
- C-248/20 (Skellefteå Industrihus) – Order – Input VAT should not be repaid immediately if a planned real estate project is cancelled
- C-194/21 (Staatssecretaris van Financien NL) – No deduction of VAT if the actual use does not match with the intended use
- C-293/21 (Vittamed technologios) – Review of VAT deduction of capital goods in case of liquidation of the taxable person
- C-627/21 (Administraţia Judeţeană a Finanţelor Publice Sibiu … )- Order – Right to deduct VAT if VAT registration is cancelled for a given period
- C-127/22 (Balgarska telekomunikatsionna kompania) – Judgment – No Adjustment of VAT deductions if scrapping of goods is duly proven
ECJ Cases Pending
- None
