- Municipalities in Poland can deduct VAT on expenses for infrastructure development before selling or leasing properties.
- The Supreme Administrative Court ruled that municipalities act as VAT taxpayers when spending on infrastructure for properties intended for sale or lease.
- The case involved a municipality that prepared land for sale or lease by investing in the development of a business activity zone, including roads, sidewalks, energy infrastructure, and stormwater drainage.
- The municipality believed that without these investments, it would not be able to sell or lease the land, as potential investors prefer developed plots.
Source: podatki.gazetaprawna.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.
