- Providing water supply and sewage disposal services is a taxable economic activity subject to VAT
- Utilizing infrastructure for water supply and sewage disposal for internal recipients is not subject to VAT
- Municipalities have the right to deduct part of the VAT from invoices related to water supply and sewage infrastructure investments
- The deduction key should be calculated based on the proportion of water supplied to external recipients in the total water supplied
- Municipalities can use a more representative method for calculating proportions based on the water supplied/sewage disposed to external recipients in the total amount
- This method best reflects the municipality’s activities and purchases made.
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.
