Shortly before its dissolution, the XIth Senate of the German Federal Fiscal Court (BFH) left taxpayers with a parting gift: in a landmark judgment on input VAT deduction, it paved the way for the transition from the special refund procedure for non-established businesses to the general assessment procedure. In doing so, the BFH not only further developed the principles distinguishing between the arising and the exercise of the right to deduct input VAT, but also reinforced the practical implementation of the VAT neutrality principle – a highly welcome development. As a result, both the substantive and formal restrictions of the refund procedure can, in certain cases, be circumvented.