EUCJ ruled that afore mentioned assets given free of charge to the public can be linked to transactions subject to VAT. In this case the establishment of recreational object provides the ability to attract more visitors who will be able to buy the company's goods and services subject to VAT.
The court admitted that a taxable person has the right to deduct the input VAT paid in relation to recreational object in case a direct and immediate link is established between the expenses associated with the input transactions and an output transaction or transactions giving rise to the right to deduct or with the taxable person’s economic activity as a whole.
This decision is relevant to many companies that are engaged in various projects in the EU, and has created a non-current asset, which directly do not earn income.