Judgement of the Court of the EU in case C-550-11 PIGI

It follows that Member States may provide for compulsory adjustment of the input VAT deduction for goods which have been stolen, irrespective of whether the theft has been duly proved.

As Bulgaria has availed itself of the possibility provided for in Art. 185 (3) of the Directive to require adjustments of input VAT deductions in case of theft, the Court found that Directive 2006/112/EC does not preclude  national provisions such as Articles 79 and 80 of the  Bulgarian VAT Act which require, where a shortfall in the goods subject to value added tax has been established, that an adjustment be made to the deduction of that input tax at the time of acquisition of those goods, where the taxable person was the victim of a theft of those goods and the perpetrator has not been identified.