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Uudenmaan LO 3.6.1998 459/7 AI generated

VAT deduction for agricultural investments allowed despite prior contract to cease farming production.

Case Number Uudenmaan LO 3.6.1998 459/7
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted
Open official source Machine-readable Markdown (.md)

Legislator summary

AI generated

The Administrative Court allowed the taxpayer to deduct VAT on agricultural investments after a six-year contract to cease farming expired. The taxpayer had incurred costs for maintaining farmland and buildings while simultaneously engaging in forestry and primary production, which generated taxable turnover. The court ruled that the prior commitment to stop farming did not preclude the deduction of costs incurred for genuine agricultural activities performed during the contract period.

Legislator headnote

AI generated

Arvonlisäverolaki 1 § 1 kohta; 102 § 1 kohta; 162 § 7 kohta: A taxpayer may deduct VAT on agricultural investments if they have actually engaged in agricultural production, even if a prior contract stipulated a temporary cessation of such activities.

Keywords

AI generated
VAT deduction agricultural production investment costs taxable turnover contractual obligation

Cited Legislation

AI generated
Arvonlisäverolaki 1 § 1 kohta
Arvonlisäverolaki 102 § 1 kohta
Arvonlisäverolaki 162 § 7 kohta

Cited Case Law

AI generated
Uudenmaan LO A:26.6.1997 T:535/5
Uudenmaan LO A:26.6.1997 T:535/5
Vaasan LO A:12.2.1997 T:53/II
Vaasan LO A:12.2.1997 T:53/II
AI generated
admin_1997_uusimaa-county__535
Tax court denies agricultural deductions when taxpayer formally relinquished farming for six years.
admin_1997_vaasa-county__53
Court allows farming deductions when temporary suspension does not end farming activity permanently.
admin_1991_hame-county__390
Administrative court allows tax deduction for agricultural assets despite temporary farming cessation due to pension commitment.
admin_1996_oulu-county__531
Farmers who voluntarily terminated a production reduction agreement early received compensation for the entire original term, not just the remaining period.
admin_2008_turku__292
Administrative court dismissed tax objection regarding tax-free sale of farm land by former farmer.

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Full text

X oli maaseutuelinkeinopiirin kanssa tekemällään sopimuksella

sitoutunut luopumaan tilan maataloustuotannosta kuudeksi

vuodeksi 1.10.1992-1.10.1998. X oli vuonna 1995 uhrannut

kustannuksia muun muassa maatalousmaan ja maatalousrakennusten

kunnossapitoon. X esitti lääninoikeudessa, että

hän aloittaa tuotannon sopimuskauden päätyttyä. Lääninoikeus

katsoi X:n, jolla oli arvonlisäverollisia puun myyntituloja,

harjoittaneen maatilallaan vuonna 1995 metsä- ja

maataloutta käsittänyttä alkutuotantoa. X sai siten vähentää

myös maataloutta varten tekemiinsä hankintoihin sisältyvät

arvonlisäverot. Äänestys 4-3.

ArvonlisäveroL 1 § 1 mom

ArvonlisäveroL 102 § 1 mom

ArvonlisäveroL 162 § 7 mom

Vrt. Uudenmaan LO A:26.6.1997 T:535/5

Vrt. Vaasan LO A:12.2.1997 T:53/II