- The Supreme Administrative Court ruled that a regional railway company had the right to deduct VAT on purchases related to the construction and modernization of stops on land used by the national railway infrastructure operator.
- The company provided the expenditure on these buildings free of charge, with the aim of increasing the attractiveness and efficiency of its railway lines.
- The tax office argued that since the company knew in advance that the expenditure would be transferred free of charge, it did not have the right to deduct tax.
- However, the Supreme Administrative Court rejected this argument, stating that the right to deduct VAT does not depend on the existence of a taxable activity.
- In this case, the goods and services were used for the company’s business activities, and therefore the company had the right to deduct VAT.
- This ruling is seen as a positive signal for taxpayers engaging in similar infrastructure projects.