On 22 April 2015 the Advocate General of the European Court of Justice (ECJ) issued an opinion in the case of Sveda UAB. The case was referred to the ECJ on 17 March 2014 for a preliminary ruling and the Court was requested to provide an answer to the following question:

Can Art. 168 of the EU VAT Directive 2006/12 be interpreted as giving a taxable person the right to deduct input tax paid to produce or acquire capital goods intended for business purposes where those goods are directly intended for use by members of the public free of charge; but they may be recognized as a means of attracting visitors to a location where the taxable person plans to make supplies of goods and services in carrying out economic activities.

Art. 168 provides that where goods and services are used for the purposes of the taxed transactions of a taxable person that person may deduct the VAT due in that member state in respect of goods and services supplied to the business and carried out by another taxable person.

The Advocate General issued an opinion on 22 April 2015. Art.168 should be interpreted as giving the right to deduct input tax in producing or acquiring capital goods intended for business purposes where they are for use by the public free of charge, but may be used to attract visitors to a location where the business plans to supply goods or services in carrying out its economic activities.

At a later date when the ECJ issues its ruling it will take into account the opinion of the Advocate General but is not obliged to follow that opinion.