VAT on public-purpose investments: property developers can breathe a sigh of relief
![perjel](/_hun/hpimages/perjel_pici.png)
![Tamás Fehér](/Aril2/uploads/module.tbox/202425/17187033657a011fee7d758d2fdf4407ffed2be03fabce0e57.jpg)
In 2009 the Supreme Court made it clear that the VAT on public-purpose investments related to property developments is deductible if it would not be possible to implement the development without such investment. Recently, however, some alarm was unexpectedly caused by the preliminary opinion of the advocate general of the European Court of Justice (ECJ) in a similar, Bulgarian case, which recommended prohibiting the tax deduction right. Although the ECJ’s judgement published in the middle of last week did not follow the advocate general’s opinion, it did make exercising the deduction right subject to some strict conditions.