If a building is used for a different purpose than intended, the entrepreneur must adjust the VAT deducted during purchase. The principle of confidence can be invoked if the inspector has created trust that revised VAT does not need to be paid. In a case where an entrepreneur bought an apartment for business purposes and requested a sales tax refund, an audit by the Tax Authorities revealed that the apartment was first used for exempt services in 2010, resulting in the deduction of reclaimed VAT. A dispute arose over whether additional assessments were correctly imposed, and the court ruled that the entrepreneur could not rely on a previous procedure to avoid additional tax assessment. The court also agreed with the inspector’s correction of input tax for 2015-2018 and rejected the entrepreneur’s claim of discrimination and appeal to the principle of trust. Revised VAT was deemed correct for 2014-2018.
Source Taxence
