- Case Overview: The case involved the right to correct VAT in full upon selling undeveloped real estate. The company had listed the property as a fixed asset in 2018 but never commenced its use or planned investments. The key issue was whether “putting into use” meant an entry in the register or actual use.
- Position of the Head of the National Fiscal Information: The Head of the National Fiscal Information argued that the 10-year VAT adjustment period began in 2018 with the property’s entry into the fixed asset register, necessitating proportional adjustment rather than a full adjustment upon sale.
- Provincial Administrative Court’s Judgment: The court ruled in favor of the company, stating that “putting into use” requires actual commencement of use, not just a formal entry in the register. The VAT correction should be made once at the time of changing the property’s use for taxable activities, recognizing the autonomy of VAT and actual economic circumstances.
Source MDDP
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