Ruling: Right to deduct VAT from invoices documenting investment expenditure incurred for the construction of a concert hall

The applicant is not a registered active VAT payer. In the years 2016-2021, the applicant built a new building (Concert Hall) on its premises from the funds of the Program … as a school run by the Minister of Culture and National Heritage. The school did not deduct VAT from purchase invoices during the implementation of the investment, because it was not an active VAT payer and signed a statement that it would not deduct this VAT at the stage of investment works and that VAT from invoices documenting investment expenditures is eligible as an expense from European Union funds – fully covered by these funds. The Concert Hall was put into use (…) 2021. So far, in accordance with the conditions for receiving funding from the European Union, the hall was made available free of charge to national institutions and musicians. The high cost of maintaining the Concert Hall remains a problem, so in the future you will register the school as an active VAT payer to be able to make refunds for used utilities and collect rental fees.

Source: sip.lex.pl

---

---