There can be no input tax correction for a vehicle that was purchased without input tax deduction. However, there is a separate correction period for subsequently installed components. In accordance with Section 15a (3) UStG, an input tax adjustment can also be considered if
- an asset is incorporated into another asset or
- another service is performed on an asset.
Several installations and other services are combined into one correction object if they are carried out „as part of one measure“.
Practical tip
However, in accordance with Section 44 (1) UStDV, the input tax deduction is only adjusted if the input tax attributable to the acquisition costs of the installed asset amounts to more than € 1,000. Initially, each item or component and each other supply must be assessed separately. However, if several components are installed and other services are provided at the same time, these must be combined into one measure, meaning that the de minimis threshold is exceeded much more quickly.
Practical example:
An entrepreneur purchased a used car in 2025 for which input tax deduction was not possible. In January 2026, he has a replacement engine installed in his car for € 5,000 plus € 950 VAT and at the same time a permanently installed navigation system for € 2,500 plus € 475 VAT.
He claims the VAT from these transactions in the amount of (€ 950 + € 475 =) € 1,425 as input tax. He removes the vehicle from the business assets as at 31.12.2026 at a partial value of € 8,000. As the de minimis limit is exceeded, an input tax adjustment must be made. Of the 5-year correction period, only 1 year (= 1/5) has expired on 31.12.2026. The input tax must therefore be corrected in the amount of 4/5 (€ 1,425 : 5 = € 285 × 4 = € 1,140).