In an interesting Hungarian case, albeit with a somewhat predictable outcome, the ECJ was called to decide on the deduction of input VAT in cases where the value of the service provided is ostensibly disproportionate to the benefit which the service generates for the recipient in matters of sales revenue or increase in sales revenue. The ECJ held that, in general, such circumstances have no effect on the right to deduct input tax.
Tax & Legal
Both VAT senates of the Supreme Tax Court have held that a VAT-free purchase by a trader giving a German VAT ID No. for goods delivered elsewhere is taxable without a corresponding input tax deduction.
The ECJ has held that a conflict of definition leading to cross-border car leasing being taxable in neither country does not preclude the right to deduct input tax.