- The text discusses a letter from the Director of the National Tax Information regarding the right to deduct VAT from expenses related to a road reconstruction project.
- The interpretation states that the taxpayer’s position regarding the tax consequences of the future event is correct.
- The municipality is not considered a taxpayer for VAT purposes, except for activities based on civil law contracts.
- The municipality is carrying out its own tasks related to local needs, including road reconstruction.
- The municipality centralizes VAT settlements and shares them with its budgetary units.
- The municipality is eligible for VAT deduction if the purchases are directly related to taxable economic activities.
- The municipality received funding for the project from the Government Fund for Poland’s Deal Strategic Investment Program.
- The project involves road reconstruction and the construction of water and sewage networks.
- The infrastructure will be owned by the municipality and will be used to provide water and sewage services through a municipal company.
- The municipality intends to provide the infrastructure to the company for free in exchange for the provision of services to residents.
- The infrastructure will not be used by the municipality or its organizational units for taxable activities.
- The question is whether the municipality has the right to deduct VAT from the investment expenses.
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.
