Judgment_paragraph 38 · Mitteldeutsche Hartstein-Industrie AG v Finanzamt Y (C-528/19)

38Finally, as regards the extent of the right to deduct, it is for the referring court to determine whether the works for the extension of the municipal road in question are, or are not, limited to what was necessary to ensure the operation of the limestone quarry by the applicant in the main proceedings. According to the case-law of the Court, if the works for the extension of that road were limited to what was necessary for that purpose, the right to deduct should be recognised for all the costs resulting from those works. By contrast, if those works exceeded what was necessary to ensure the operation of that quarry, the existence of a direct and immediate link between those works and the economic activity of the applicant in the main proceedings would be partially broken, with the result that the right to deduct would have to be recognised only for the input VAT levied on that portion of the costs that was incurred for the works for the extension of the municipal road in question which was objectively necessary to allow the applicant in the main proceedings to carry out its economic activity (see, to that effect, judgment of 14 September 2017, Iberdrola Inmobiliaria Real Estate Investments, C‑132/16, EU:C:2017:683, paragraphs 37 to 39).