26According to established case-law, the taxation of leasing and letting transactions is a power which the Community legislature has conferred on the Member States in derogation from the general rule established in Article 13(B)(b) of the Sixth Directive, according to which leasing and letting transactions are exempt from VAT. The right to deduct attached to that taxation does not therefore operate automatically in that context, but only if the Member States have made use of the power under Article 13(C) of the Sixth Directive and subject to the taxable persons exercising the right of option allowed to them (see Case C-269/03 Vermietungsgesellschaft Objekt Kirchberg [2004] ECR I-8067, paragraph 20).
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