VAT court dismissed claim that indirect construction costs are deductible input tax base items.

The Administrative Court dismissed the taxpayer's claim to deduct indirect construction costs from the VAT base. The taxpayer argued that financing costs incurred during the construction period should be treated as direct input tax, but the court found these to be indirect expenses. Consequently, the court ruled that only direct costs related to the construction activity qualify for VAT deduction under the relevant sections of the Value Added Tax Act.