Importation of leased goods to be used for taxed activities – Right to deduct VAT for the lessee?

In its 98th meeting, the VAT Committee opened in working paper 1061 the discussion on the possibility for a lessee of imported goods to deduct the VAT paid upon the importation of those goods, when the lessee is designated as liable for the payment of such VAT. The VAT Committee is an advisory committee providing (non-legally binding) guidance on the application of the EU VAT Directive. The Commission Services concluded more specifically for the case of import of a leased aircraft that the lessee of an imported good is not entitled to deduct VAT.

Source EY

See also

• VAT Committee – 122th meeting – March 20, 2023 – Agenda & Working Papers