- 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.
