Administrative court dismisses tax authority's appeal regarding VAT deduction claims by a limited liability company.

The Supreme Administrative Tribunal dismissed the tax authority's appeal against a decision denying VAT deductions to a limited liability company. The authority argued that the company failed to prove the business purpose of the purchased goods, while the company claimed the expenses were strictly related to its taxable activities. The court ruled that the burden of proof rested on the taxpayer to demonstrate the direct link between the acquisition and the generation of taxable output, which was not sufficiently established in this instance.