Finland Tax Agency Posts Preliminary Ruling Clarifying VAT Deductions for Tramway Project Planning Activities

The Finnish Tax Administration Sept. 8 posted Central Tax Board Preliminary Decision No. KVL:2025/32, clarifying VAT deductions for tramway project planning activities. The taxpayer, as the client, was primarily responsible for the implementation plan phase of a tramway project. The taxpayer’s activities were aimed at allowing the project to proceed to the construction phase, which would result in the taxpayer collecting compensation for the usability of the tram infrastructure being built, as well as for the equipment and its usability, with the income received by the taxpayer being subject to VAT. The Central Tax Board clarified that: 1) the planning ...