On November 17 European Court of Justice Advocate General Juliane Kokott delivered her opinion in Société Veleclair v. Ministre du budget (C-414/10), holding that article 17, section 2(b) of the Sixth VAT Directive does not allow a member state to make the right to deduct import VAT contingent on its actual payment by the taxpayer, even if the person liable for the tax and the owner of the right to deduction are the same person. She said a member state is, however, authorized to maintain such a rule on a temporary basis. Further, the taxpayer is not entitled to deduct import VAT that has not yet been paid when there is no civil obligation to pay the VAT, she said.

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