- The letter is an individual interpretation from the Director of the National Tax Information regarding the right to reduce the amount of VAT tax due by the amount of VAT tax incurred on expenses related to an investment.
- The interpretation confirms that the taxpayer’s position regarding the tax consequences of the described future event in the VAT is correct.
- The request for the interpretation was submitted by the taxpayer on August 4, 2023, and it concerns the right to reduce the VAT tax due by the amount of VAT tax incurred on expenses related to the investment, as well as the absence of the obligation to make corrections to these expenses made during the investment that will be abandoned.
- The taxpayer is a limited liability company formed in 2012 for the purpose of carrying out a construction investment in the center of a city.
- The company planned to finance the investment through funds contributed by its shareholders and external financing.
- The company incurred various expenses related to the investment, which were documented by invoices and recorded as construction in progress in the company’s books.
- Due to various factors, including increasing costs and changes in construction regulations, the company decided to abandon the investment as it became economically and legally unjustified.
Source: sip.lex.pl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
