Opinion of the Advocate General — ECLI:EU:C:1996:296
Date: 1996-07-11
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Procedure: Reference for a preliminary ruling
Origin: Belgium

Summary of the Judgment
Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value added
tax — Deduction of input tax — Deduction of tax payable on goods and services supplied for the
purpose of investment work intended to be used in connection with taxable transactions —
Impossibility for the taxable person to use the goods and services in question for the purposes
intended — Irrelevant in regard to the right to deduct — Possibility of adjusting the deduction
originally made under the conditions set out in Article 20(3) of the Sixth Directive
(Council Directive 77/388, Arts 17(2) and 20(3))
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SUMMARY — CASE C-37/95
Article 17 of Sixth Directive 77/388 on the
harmonisation of the laws of the Member
States relating to turnover taxes must be con­
strued as allowing a taxable person acting as
such to deduct the value added tax payable
by him on goods or services supplied to him
for the purpose of investment work intended
to be used in connection with taxable trans­
actions. The right to deduct remains acquired
where, by reason of circumstances beyond
his control, the taxable person has never
made use of those goods or services for the
purpose of carrying out taxable transactions.
A supply of investment goods during the
adjustment period, where such occurs, may
give rise to an adjustment of the deduction
under the conditions set out in Article 20(3)
of the directive.
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