European Union – Value added tax. The Court of Justice of the European Union ruled that Council Directive (EC) 2006/112 meant that, where a taxable person had had a building constructed and had sold that building for a price less than the cost of constructing it, that taxable person was entitled to deduct all of the VAT paid in respect of the construction of that building, and not only a part of that tax in proportion to the parts of the building which its purchaser used for economic activities.