Tax Interpretation: Municipality’s Right to Deduct VAT from Boiler Room Modernization Expenses

• Letter issued on September 19, 2024 by the Director of the National Tax Information.
• Concerns the right to deduct VAT from the municipality’s expenses for the modernization of the boiler room.
• The municipality as an active VAT taxpayer has the right to deduct input tax.
• Deduction applies to expenses related to the implementation of a project co-financed by the government program.
• The municipality’s position on VAT deduction was deemed correct.
• Deduction is granted to the extent that expenses are related to taxable activities.
• Requirements for deduction include the use of goods and services for taxable activities.

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.