If the conditions for input tax deduction are subsequently not fulfilled (own use), the input tax deduction must be corrected at the point in time at which the conditions are no longer fulfilled. The input tax previously deducted, including the parts corrected as a subsequent input tax deduction, must be repaid.
Own use occurs in particular where the taxable person withdraws goods or services permanently or temporarily from their business, provided on procurement or contribution of the whole or of its components they have made an input tax deduction or they have procured the goods or services under the notification procedure in accordance with Article 38 which:
they use outside their business activity, in particular for private purposes;
they use for a business activity which does not entitle them to make the input tax deduction under Article 29 paragraph 1;
they hand over without consideration, without there being a business reason; in the case of gifts of up to 500 francs per person and year and of advertising gifts and samples with the aim of realising turnovers taxable or exempt from the tax, a business reason will be presumed automatically;
on the cessation of tax liability are still subject to their right of disposal.
If in the period between the receipt of the supply and the non-fulfilment of the conditions for the input tax deduction, the good or service was put to use, the input tax deduction must be corrected in the amount of the fair value of the good or the service. To determine the fair value, the input tax amount is reduced on a straight-line basis for every year that has expired by a fifth for movable goods and for services, and by a twentieth for immovable goods. The accounting treatment is of no significance. The Federal Council may, in justified cases, stipulate departures from the depreciation rules.
If a good is used only temporarily outside the business activity or for a business activity not entitling the taxable person to make an input tax deduction, the input tax deduction must be corrected based on the amount of the tax that would be due on the rent that an independent third person would charge therefor.