- The Supreme Administrative Court has made a significant ruling regarding the deduction of VAT from expenditure on municipal water supply and sewage systems.
- Currently, communes can only deduct VAT up to the amount of the VAT pre-factor, which is usually quite low.
- However, a line of jurisprudence has allowed for the calculation of the pre-factor with a more favorable method. The recent ruling allows for a full deduction of VAT from such expenditure.
- This is important for local governments carrying out tasks in this field and may result in more favorable VAT settlements in the future, as well as a reduction in administrative work for many communes.
- The ruling is significant for those who disagree with the current interpretation and may consider adjusting previous settlements.
Source Prawo.pl
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