Eon Aset Menidjmunt OOD v Direktor na Direktsia Obzhalvane i upravlenie na izpalnenieto

In the Bulgarian case of Eon Aset Menidjmunt OOD v Direktor na Direktsia Obzhalvane i upravlenie na izpalnenieto (CJEU Case C-118/11) the CJEU held that Article 168 of Directive 2006/112/EC ‘must be interpreted as meaning that a leased motor vehicle is to be regarded as used for the purposes of the taxable person’s taxed transactions if there is a direct and immediate link between the use of that vehicle and the taxable person’s economic activity and the time when the right to deduct arises and when it is necessary to take into account the existence of such a link is on the expiry of the period to which each payment relates’. Furthermore ‘a motor vehicle leased under a financial leasing contract and placed in the category of capital goods is to be regarded as used for the purposes of taxed transactions if the...