City Cannot Deduct VAT on Road Construction, Even for Public Transport Use

The city cannot deduct VAT from road construction and repairs.
The city acts as a public authority when building roads, thus not paying VAT.
The Supreme Administrative Court ruled that the use of roads for public transport and revenue from tickets and advertisements does not affect VAT exemption.
The city wanted to deduct VAT proportionally, arguing that road infrastructure is linked to both public tasks and taxable activities like ticket sales and advertising space rental.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.