VAT deduction and member state sovereignty: (still) a good idea?

Figures & data

Table

Country	Expenses on motor vehicle (including petrol)	Entertainment expenses	Representation expenses	Tobacco and alcoholic beverages	Accommodation	Meals and beverages (restaurant and catering)	Transport and taxi services	Other
Austria	X	X
Belgium	*	X		X	X	X
Bulgaria	X	X
Croatia	*	X
Cyprus		X
Czech Republic		X	X
Denmark	*				X	X		Nursery, day care, after-school care, payments in kind
Estonia	*
Finland	X	X		X	X		X
France	X				X		X
Greece	X	X		X	X	X	X
Hungary	X	X			X	X	X	Parking services and highway tolls, telephone and mobile phone costs
Ireland	*	X			X	X
Italy	*	X			X	X
Latvia	*	X	*			X		Recreation
Lithuania	X	*	*				X
Malta	X	X	X	X			X	Works of arts, collector’s items and antiques, expense related to vessels and aircrafts
The Netherlands		X				X		Employee benefits in kind
Poland	*				X	X
Portugal	*	X	*	X	X	X		Expenses on boats and aircrafts, travel expense and tolls
Romania	*			X
Slovenia	X	X			X	X		Expenses related to vessels and aircrafts
Spain	*	X		X	*	*		Gifts, jewels and precious stones, travel expense
Sweden	*	*			X		X
UK	*	X
X = non recoverable VAT; * = partially recoverable VAT.

Table

Year	A		B
	Deductible	Non-deductible	Deductible	Non-deductible
2018	€ 200,000		€ 200,000
2019-2023	100%, no correction		100%, no correction
2024		€ 20,000		€ 20,000
2025		€ 20,000		€ 20,000
2026		€ 20,000		€ 20,000
2027		€ 20,000		€ 20,000
2028	Adjustment period ended			€ 20,000
VAT deduction in total	€ 200,000	€ 80,000	€ 200,000	€ 100,000
On balance	€ 120,000		€ 100,000

Table

	With taking into account the full amount of VAT in the year of first use	Without taking into account the full amount of VAT in the year of first use
2017	VAT Deduction: € 10,000	VAT Deduction € 10,000
2018	Adjustment € 2,000 = 50% x € 20,000 -/- (40% x € 20,000)	Adjustment: € 400 = 1/5 x (50% x € 20,000 -/- (40% x € 20,000))
2019	No adjustment	Adjustment € 400
2020	No adjustment	Adjustment € 400
2021	No adjustment	Adjustment € 400
2022	No adjustment	Adjustment € 400
Total VAT deduction	€ 8,000 (€ 10,000 -/- € 2,000)	€ 8,000 (€ 10,000 -/- (5x € 400))