- The CJEU has established criteria for determining when goods written off from a taxpayer’s inventory are subject to input VAT adjustment.
- The court ruled that no adjustments are required when goods are resold as waste or destroyed due to being unusable, provided the destruction is duly proven and the goods have lost all usefulness in the taxpayer’s economic activities.
- National rules requiring input VAT adjustments in such situations are incompatible with the Principal VAT directive.
- Businesses should reconsider VAT adjustments for unused stock destroyed or resold as waste.
Source DLA Piper
See also
- Summary of ECJ C-127/22: No Adjustment of deductible VAT if he destruction is duly proven and the goods had objectively lost all usefulness in the taxable person’s economic activities
- C-127/22 (Balgarska telekomunikatsionna kompania) – Judgment – No Adjustment of VAT deductions if scrapping of goods is duly proven
- Roadtrip through ECJ Cases – Adjustment of deductions – Recalculation (Art. 184 – 186)
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
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