NSA: The municipality can deduct 100 percent VAT on expenditure on waterworks

Local governments can deduct the entire VAT from expenses for the current operation of water and sewage systems and for investments in their development, they do not have to use the so-called pre-coefficient of VAT – ruled the Supreme Administrative Court in a landmark judgment. The court also emphasized that the tax authority may not modify the application for interpretation, but is bound by the description provided by the taxpayer.

Source: prawo.pl

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