In its judgement of 25.07.2018 in the legal case C-140/17 the ECJ ruled that a municipality can become entitled to input VAT deduction by virtue of a subsequent allocation decision. According to the ECJ, an input VAT correction is not ruled out merely because the public body used an asset exclusively on behalf of the government at the time of its acquisition. The ruling gives hope to both public and private bodies that the previous static allocation of assets to the non-economic sector, at the time of their acquisition, will ultimately become a thing of the past.