In this article, the author explains that, by adopting Art. 168a of the VAT Directive, the Member States of the European Union have finally eliminated the ECJ’s overly generous doctrine of asset labelling, at least as regards the right to deduct VAT on the purchase of immovable capital goods used for both business and private purposes. As regards the right to deduct in respect of movable capital goods, that doctrine will remain intact in the Member States that will not use their newly acquired powers in full. The doctrine will also remain intact as regards the disposal of capital goods used for both business and private purposes.