Vittamed technologijos. Obligation to adjust VAT deductions in case of liquidation taxable person and removal from register of VAT payers

Judgment of the Court of Justice in the case Vittamed technologijos. Articles 184 to 187 of Council Directive 2006/112/EC must be interpreted as meaning that a taxable person is under an obligation to adjust deductions of input VAT relating to the acquisition of goods or services intended to produce capital goods in the case where, as a result of the decision of the owner or sole shareholder of that taxable person to place it in liquidation and of the taxable person’s request to be removed, and it being removed, from the register of VAT payers, the capital goods produced have not been used - and will never be used - in the course of taxable
economic activities. The reasons for the decision to place that taxable person in liquidation and, consequently, for the abandonment of the intended taxable economic activity, such as constantly growing losses, the absence of orders and the doubts of the taxable person’s shareholder as to the profitability of the intended economic activity, have no bearing on the taxable person’s obligation to adjust the deductions of VAT concerned, in so far as that taxable person no longer has - and will never have - any intention of using the
capital goods for the purposes of taxable transactions.