On 17 December 2015, the ECJ ruled that a licensing agreement could be granted by a company in one member state (in this case, Hungary) in favour of a company in another member state  (in this case, Portugal) in order to take advantage of the lower VAT rate in Portugal, provided the agreement was genuine. For the arrangement to be abusive, it would need to be wholly artificial, and this is for the referring court to determine. Factors to take into account in this respect include whether the licensee has the appropriate human and technical resources and equipment to carry on the activity in its own name.

The ECJ decision can be found here.