S.L. 406.12 Art. 4Adjustments.

The adjustment is made where, during the period of reference as the case may be:

(a) the capital good is used by the taxable person both for private purposes or for the purposes of operations in respect of which value added tax is not deductible or in respect of which value added tax is deductible in a proportion other than that of the initial deduction;

(b) there are changes in the elements used for the calculation of the deducted input tax;

(c) the capital good is subject to a supply for which the value added tax is deductible, insofar as the right to deduct input tax on this good has been limited. In this case, the additional amount of input tax which can be deducted is limited to the amount obtained by applying the taxable amount of the supply, the rate at which input tax was calculated for which the right to deduct is adjusted;

(d) the capital good ceases to exist within the framework of the enterprise, unless it is proved that the capital good was subject to a supply for which the value added tax was deductible or that the capital good has been destroyed or stolen;

(e) the taxable person becomes a non-taxable person or only carries out operations for which the value added tax is not deductible, unless it is proved that the capital good was subject to a supply for which the value added tax was deductible.