European Court to Review VAT Deduction Rules for Building Improvements

• European Court to reassess VAT deduction rules for improvement works
• VAT deduction for business assets subject to adjustment rules
• Standard adjustment period is 5 years, can be extended up to 25 years for certain assets
• Belgium has 5-year adjustment period for conversion and improvement works on buildings
• Case involves law firm claiming adjustment of VAT for renovation works
• Tax authorities rejected adjustment, claimed 5-year adjustment period should apply
• Taxpayer argued for 15-year adjustment period based on EU VAT Directive
• Dispute had to be settled in court

Source: linkedin.com

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.

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