- The letter is a response to a request for an individual interpretation of the tax consequences of a project related to the establishment of a “Center” for senior citizens.
- The project involves providing social services to senior citizens through the adaptation of a building in the city center.
- The building will be equipped with ramps and an elevator for accessibility, as well as environmentally friendly solutions such as heat recovery ventilation and a heat pump.
- After the construction work is completed, necessary equipment will be purchased for the functioning of the Center.
- The project is non-commercial and will not generate profit, and the services provided by the Center will be free of charge.
- The municipality, as the project implementer, will not be able to deduct the VAT incurred in the project as it is not related to taxable activities.
- The municipality is a VAT taxpayer and the project is carried out by the Municipal Office, which is responsible for invoice payments.
- The entire infrastructure will be made available for free use.
- The conclusion is that the municipality will not be able to deduct VAT from the investment.
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.
