45It must be borne in mind in that regard that, according to the fundamental principle which underlies the VAT system, VAT applies to each transaction by way of production or distribution after deduction of the VAT directly borne by the various cost components (see, in particular, Case C-98/98 Midland Bank [2000] ECR I-4177, paragraph 29, and Abbey National, paragraph 27).
Source: EUR-Lex, © European Union, 1998-2026. Reuse authorised under Decision 2011/833/EU.