Judgment_paragraph 55 · Finanzamt Dachau v Achim Kollroß and Finanzamt Göppingen v Erich Wirtl (C-660/16, C-661/16)

55The adjustment mechanism provided for in Articles 184 to 186 of Directive 2006/112 is an integral part of the VAT deduction scheme established by that directive. It is intended to enhance the precision of deductions so as to ensure the neutrality of VAT, so that transactions effected at an earlier stage continue to give rise to the right to deduct only to the extent that they are used to make supplies subject to VAT. That mechanism thus aims to establish a close and direct relationship between the right to deduct input VAT and the use of the goods or services concerned for taxable output transactions (judgments of 18 October 2012, TETS Haskovo, C‑234/11, EU:C:2012:644, paragraphs 30 and 31, and of 13 March 2014, FIRIN, C‑107/13, EU:C:2014:151, paragraph 50).