Ruling: Settlement of VAT by the commune in connection with water and sewage management

The interpretation will not have legal effects in this regard if , in the course of tax proceedings , tax inspections or customs and tax inspections , it is determined that the method of calculating the pre-factor based on the criterion of the amount of water supplied and sewage discharged and treated as part of external transactions subject to VAT, in the sum of the amount of water supplied and sewage discharged and treated within the totality of all transactions/consumption (i.e. both external transactions subject to VAT and internal needs not subject to VAT), assessed by you as the most representative, will not ensure the deduction of input tax on investment expenditure incurred in as part of investments for water and sewage infrastructure only in the part attributable to economic activity and will not objectively reflect the part of expenditure attributable to economic activity and will not objectively reflect the part of expenditure attributable to economic activity and other purposes , and therefore will be the method that best suits the specifics of your business and your purchases .

Source: lex.pl

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