- The text is a letter from the Director of the National Tax Information regarding the right to recover VAT tax in relation to a road construction project.
- The letter confirms that the taxpayer’s position regarding the tax implications of the project is correct.
- The request for an individual interpretation was made by the municipality, which received funding for the project but is not able to recover the VAT tax.
- The municipality asked if they would be able to recover the VAT tax incurred in the project.
- The response states that the municipality, as a VAT taxpayer, does not have the right to deduct the VAT tax paid for the project, as the goods and services are not used for taxable activities.
- The interpretation is based on the relevant articles of the VAT law.
- The conclusion is that the municipality’s position is correct and they are not eligible to recover the VAT tax.
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.
