The ins and outs of VAT deduction of imported leased goods

The VAT Committee has published two working papers (number 1061 and number 1064) regarding the deduction of import VAT when goods are imported into the EU for leasing purposes.
Whether the import VAT is deductible and by whom depends on various factors such as whether the goods are imported by the lessor or lessee, the length of the lease, and the nature of the goods.
For financial lease, the lessee can deduct the import VAT if certain conditions are met.
However, for operational lease, the practice differs across EU Member States, and some do not allow the lessee to act as an importer.
Generally, the importer is liable for payment of VAT, but there are exceptions where a lessee may become jointly liable.
The lessee can deduct import VAT if the criteria for deduction are fulfilled, which include holding an import document specifying them as the importer and using the goods for taxable economic activities.
The importer does not need to be an owner of the goods to deduct import VAT, but they must use the goods for taxable economic activities.