Tax authorities are already issuing the first interpretations, according to which municipalities do not pay VAT on subsidies for project implementation. This is a 180-degree turn resulting from the recent CJEU judgments C-612/21 and C-616/21. But the consequence is also the inability to deduct VAT on purchases. There are concerns that the tax office will want a tax refund for previous years. According to experts, the position of the Ministry of Finance is necessary.
Source Prawo
See also
- C-612/21 Gmina O. (Municipality of O.) – A municipality is not a taxable person due to a project to increase the proportion of renewable energy sources
- C-616/21 Gmina L. (Municipality of L.) – A municipality is not a taxable person for contracting out removal of asbestos
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
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