The author, in this article, focuses on the EU VAT system and reflects upon a number of recent court cases, to try and determine to what extent the right to deduct VAT is “an absolute right” and the role of the Court of Justice of the European Union in reiterating the fundamental principle of the neutrality of the EU VAT system by ensuring the deduction in full of eligible input VAT, as regards businesses. Whilst the focus of this article is on the EU VAT system, inevitably the principles discussed, and their application, will pertain to any country operating a VAT system similar to the European Union’s.