In the Romanian case of SC Gran Via Moineşti SRL v Agenţia Naţională de Administrare Fiscală (ANAF) (CJEU Case C-257/11) the CJEU held that article 185 of Directive 2006/112/EC ‘must be interpreted as meaning that in circumstances such as those in the main proceedings the demolition of buildings acquired together with the plot of land on which they were constructed which is carried out with a view to developing a residential complex in place of those buildings does not result in an obligation to adjust the initial deduction of the value added tax relating to the acquisition of those buildings’.
Why it matters: The Romanian tax authority was not entitled to claw back the input tax which it had initially claimed on the purchase of the buildings which it subsequently demolished.
