VAT Deduction Rights for Tram Project Planning Costs Regardless of Construction Phase Progression

The applicant was responsible for the implementation planning phase of a tram project, aiming to proceed to the construction phase. If the project advanced, the applicant would charge for the use of the tram infrastructure and equipment, with all revenues being subject to VAT. If the project did not proceed, the applicant would transfer the plans to a third party for a VAT-inclusive fee. The Central Tax Board determined that the planning phase was VAT-taxable business activity, granting the applicant the right to deduct VAT on project costs, even if the project did not advance to construction. This ruling applies from June 18, 2025, to December 31, 2026.

Source: vero.fi

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.

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