Ruling: Determination of the tax base for re-invoicing costs related to consumed electricity

The commune ( …) is an active VAT payer .

Pursuant to the Act of March 8 , 1990 on commune self-government (Journal of Laws of 2023 , item 40 , item 572), the commune is endowed with legal personality and has the capacity to perform civil law acts . The commune performs its own tasks (specified in Article 7 of the Act on commune self-government ) independently or through appointed ones municipal organizational units . The commune until (…) was the owner of land min. place (…). (…) The city (…) in accordance with the Regulation of the Council of Ministers of (…) “On the determination of the borders of certain communes and cities and granting the status of the city to certain localities ” took over the areas listed in the above- mentioned regulation , min. place (…).

Since (…), the city manages public roads in (…). Pursuant to an agreement between the Municipality and the City regarding the settlement of street lighting costs in the town taken over by the City (…), until the City launches its own lighting network, the Municipality issues re – invoices for the City for street lighting costs in towns (…). The tax base is the gross amount – according to the invoice issued by the energy company . The Municipality charges VAT on the gross amount charged by the energy company .

In the case of re-invoicing costs related to electricity consumed, is the tax base the gross amount, which already includes VAT charged by the energy company, or the net amount?

Source: lex.pl

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