Will the Applicant (City) be entitled to deduct input VAT on expenses incurred for the implementation of the project?
Your position on the matter: According to the Applicant, the Commune, when implementing the project, will perform its own task imposed on the local government unit by the provisions of the Act of 8 March 1990 on Commune Self-Government, and thus it will not sell VAT-taxed goods or services related to the implemented project. Therefore, the commune cannot and will not be able to recover in whole or in part the VAT incurred on the project under implementation in accordance with the Act of 11 March 2004 on tax on goods and services (consolidated text: Journal of Laws of 2022 item 931 as amended) art. 15 sec. 6.
Source: sip.lex.pl
