- Disputes over VAT taxation of grants are not new for tax advisors
- WSA in Warsaw ruled in favor of not taxing VAT on a grant received by the Coalition for Polish Innovation Foundation for the creation of the European Center for Digital Innovation (EDIH)
- The National Tax Information Director believed that the grant should be taxed on services provided to entrepreneurs, but not on other project activities
- WSA in Warsaw overturned the interpretation, stating that the estimated number of services and recipients for budgeting purposes does not establish a connection between the grant and the value of specific services
- The grant for creating the EDIH is considered a general cost and is not subject to VAT
- The ruling is significant for clarifying VAT taxation on grants received for projects in Poland
- The hope is that the written justification will reflect the firmness of the ruling and help resolve doubts for all entities carrying out similar projects to the Foundation’s.
Source: crido.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.
