An entrepreneur may deduct VAT on goods and services that he uses in connection with his business for taxable activities. He usually claims this input VAT in the period in which he receives the invoice for the goods or services.
When it comes to the acquisition of immovable property or movable property, that has to be amortized for income tax or corporate tax purposes, this deduction of input VAT is not yet final.
In respect of movable property or immovable property this input VAT deduction is re-examined for a number of financial years after the financial year in which it was taken into use. If within this period a change occurs in use (from taxable to exempt or vice versa), the initially claimed deduction should be adjusted, or revised.