European Union Gazettes ECJ Preliminary Ruling on Bulgarian VAT Deduction Rules

The European Union Official Gazette June 19 published European Court of Justice (ECJ) Preliminary Ruling No. C-127/22, on Bulgarian VAT deduction rules. A Bulgarian company wrote off various goods, and adjusted the related input VAT deductions. The Tax Agency denied the company’s refund request. Upon a request for a preliminary ruling, the ECJ held that: 1) the EU VAT directive precludes national legislation that allows taxpayers to adjust input VAT deductions for disposals that cause goods to lose all usefulness in the taxable person’s economic activities; 2) the sale of goods written off as waste doesn’t create a change in ...