36For VAT to be deductible, the input transactions must have a direct and immediate link with the output transactions giving rise to a right of deduction. Thus, the right to deduct VAT charged on the acquisition of input goods or services presupposes that the expenditure incurred in acquiring them was a component of the cost of the output transactions that gave rise to the right to deduct (see Cibo Participations, paragraph 31; Case C-465/03 Kretztechnik [2005] ECR I-4357, paragraph 35; Case C-435/05 Investrand [2007] ECR I-1315, paragraph 23; Securenta, paragraph 27; and SKF, paragraph 57).
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