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VAT Taxation of EDIH Grants: Evolving Jurisprudence and Unchanged KIS Director’s Practice

  • Disputes have been ongoing in administrative courts regarding VAT taxation on grants received for European Digital Innovation Hub (EDIH) projects.
  • These projects aim to support small and medium enterprises in technological transformation.
  • The Director of KIS maintains that grants related to work packages involving services to entrepreneurs should be subject to VAT.
  • Courts, however, have ruled that the entire grant should not be taxed, as it covers project costs and does not affect service pricing.
  • The Director of KIS continues to challenge favorable court rulings for taxpayers, leading to potential resolution by the Supreme Administrative Court.
  • The issue involves public funding for projects crucial to the Polish economy, highlighting the need for a swift resolution.
  • Current explanations from the Ministry of Finance and the European Commission do not fully protect program participants from tax disputes.

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.

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