- A municipality is creating a new publicly accessible and non-commercial playground.
- The project is partially funded by a grant from the Rural Development Program 2014-2020.
- The investment includes site preparation, equipment delivery and installation, and modernization of the existing safe surface.
- The municipality cannot deduct the VAT incurred for this investment.
- The project is for the municipality’s non-commercial tasks, not business activities.
- The playground will be available to the public for free, generating no taxable revenue for the municipality.
- The VAT Act allows VAT deduction only if goods and services are used for taxable activities.
- The municipality is not a VAT taxpayer for activities performed as a public authority unless it engages in civil law contracts.
- The investment is part of the municipality’s duties in physical culture and tourism, which are not considered business activities under the VAT Act.
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.
