# Deliveries of investment goods during the regularisation period

If the capital assets are transferred during the adjustment period, a single adjustment is made for the remaining years of the adjustment period, applying the following rules:

1. Delivery subject and not exempt: the asset is considered to have only been used in transactions eligible for deduction during the year of sale and the remaining years up until the end of the correction period (100 percent).

Limit on the deduction: the amount accrued in relation to the delivery of the good.

2. Delivery exempt or non-subject:the asset is considered to have only been used in non-transactions eligible for deduction during the entire year of sale and the remaining years up until the end of the correction period (0 percent).

However, the first rule shall apply to exempt or non-taxable supplies giving rise to the right to deduct.

Limit on deductions: the amount resulting from applying the current rate of taxation applicable to the same kind of goods to the domestic value of the goods exported or dispatched to another Member State.

Example:

A building purchased in "n-1" for 2,000,000 euros plus 420,000 euros in VAT is sold in "n" for 1,000,000 euros.

The final pro rata or percentage deduction for "n-1" was 50%.

1. If the delivery is taxable and not exempt due to a waiver of the exemption:

VAT charged on the sale:(1.000.000 x 21%) = 210.000 euros

Correction:

• Deductible VAT in 'n-1':420,000 x 50% = 210,000 euros
• Deductible VAT in 'n':- 420,000 x 100% = - 420,000 euros
• Total:(210,000 euros - 420,000 euros) = - 210,000 euros

• This negative difference is divided by 10 and multiplied by 9:

• (-210,000 ÷ 10) x 9 = - 189,000 euros(*)

2. If the delivery is taxable but exempt:

VAT charged on the sale:1,000,000 x 21% = 210,000 euros

Correction:

• Deductible VAT in 'n-1':420,000 x 50% = 210,000 euros
• Deductible VAT in 'n':- 420,000 x 0% = 0 euros
• Total:210,000 euros

• This positive difference is divided by 10 and multiplied by 9:

• (210,000 ÷ 10) x 9 = 189,000 euros(*)