- VAT deducted on investment goods may need to be repaid if a company stops trading
- The deduction of VAT on capital expenditure is not definitively acquired until the end of a review period
- Traditionally, a company did not have to regularize VAT if it had intended to carry out an economic activity but was unsuccessful
- However, a recent court ruling states that when a company cancels its VAT number, it must repay the VAT initially deducted on unsold goods or services
- The reason for ceasing trading does not matter, what triggers the VAT adjustment is the intention to no longer use the capital goods on a permanent basis.
Source: vatdesk.eu
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "European Union"
- EU Refers Spain to Court for Failing to Transpose VAT Directives into National Law
- EU Refers Spain to CJEU Over Failure to Transpose Two Key VAT Directives
- EU Court Rules VAT Applies to In-Game Asset Sales; Not Exempt as Financial Services
- ECJ Rules VAT Applies to Trading In-Game Assets for Real Money, In-Game Gold Not Exempt
- EN 16931 update: the next step in e-invoicing is on its way
