First and foremost, the High Court ruled that X did not have a right to deduct the collected Danish VAT.
Secondly, the High Court stated that EU case law did not entail that the buyer of the goods, who had unduly paid (Danish) VAT to the supplier, could bring a refund claim against the tax authorities, but merely noted that the recipient could require a refund from the supplier under national law.
The High Court stated that the incorrect charging of Danish VAT on the invoices and the payment thereof from X to Y was solely due to the circumstances of X and Y. Now when Y had not paid the incorrect charged VAT to the Danish Tax Agency, X had thus not demonstrated that there was a basis for a repayment claim. Hence, the Danish Tax Ministry was acquitted.