The CJEU judgment in the case of CTT – Correios de Portugal v Autoridade Tributária e Aduaneira C-661/18 was delivered on 30 April 2020. This case concerned the adjustment of input VAT deductions made by CTT in the course of its provision of postal services in Portugal and how the recovery rate is to be calculated. It also assessed whether the refusal to allow a recovery rate correction conflicted with the principles of fiscal neutrality, effectiveness, equivalence and proportionality. The supply of postal services by CTT was exempt from VAT (Article 132(1)(a)), with no input VAT recovery, but it was also engaged in taxable supplies giving rise to input VAT recovery. In the period 2007 to 2012, postal bill payment services provided by CTT were treated as exempt from VAT. The postal services market was then liberalised, leading to a change to the VAT treatment of some services. Postal bill payment services became liable to VAT, and CTT started accounting for VAT on such services in 2015, but the tax authority confirmed that the postal bill payment services had actually been VATable since 2013. CTT made adjustments to its output VAT for 2013 to 2015 and changed the method by which it calculated its input VAT recovery rate from turnover to actual use. This gave rise to an increase in input VAT recovery for CTT. The tax authority argued that the deduction method could not be changed when the final proportion had already been applied and that CTT was out of time to make the adjustment.