- The Cassation Court ruled that a taxpayer must adjust the VAT deduction if a purchased asset is not used for business purposes but is instead allocated for personal use.
- In the specific case, a taxpayer bought a property intended for private parking but could not use it as such due to administrative restrictions.
- The taxpayer decided to close the VAT account and issued a self-invoice for the property’s personal use.
- The court emphasized the need to adjust the initial VAT deduction, aligning with EU principles that require a direct link between VAT deduction rights and taxable operations.
- If purchased goods or services are used for exempt or non-VAT operations, there can be no VAT collection or deduction.
- The right to deduct VAT is lost if the direct link between the deduction and taxable operations is broken, as the taxpayer no longer intends to use the investment for taxable purposes.
- In this case, no VAT-subject operations followed the property purchase, and the taxpayer reallocated the asset to themselves, canceling the VAT account.
Source: eutekne.info
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.
