In Mitteldeutsche Hartstein-Industrie AG v Finanzamt Y (Case C-528/19) (16 September 2020) the CJEU held that a business was entitled to recover input VAT it incurred in relation to the extension of a public road carried out for the benefit of a German municipality.
The applicant was a managing holding company with two subsidiaries. One of the subsidiaries was given permission to redevelop and operate a limestone quarry on the condition that it also develop access to it by way of a public road. The public road was owned by the municipality and had to remain open to the public so it was used both by the subsidiary’s heavy goods vehicles and by other vehicles. VAT was incurred on the road extension works.
The first question for the CJEU was whether VAT was deductible on the extension works given that those works were carried out for the benefit...
