European Union – Value added tax. The concepts of 'cancellation' and 'refusal' in art 90(1) of Council Directive (EC) 2006/112 should be interpreted as including the situation in which, under a financial leasing agreement with definite transfer of ownership, the lessor could no longer claim payment of the leasing instalment from the lessee because the lessor had terminated the agreement owing to breach of contract by the lessee. The Court of Justice of the European Union so held in a preliminary ruling in proceedings concerning the refusal by the Hungarian tax authorities to allow the correction of invoices which the applicant company had made with a view to obtaining a reduction of the taxable amount for VAT following the termination of several financial leasing agreements owing to breaches of contract by the lessees.