Ruling: No right to deduct VAT from expenses for the bicycle track construction project

In your opinion, in accordance with Art. 86 section 1 of the Act of 11 March 2004 on tax on goods and services (Journal of Laws of 2021, item 685, as amended), VAT taxpayers have the right to reduce the amount of tax due by the amount of input tax to the extent what the purchased goods and services are used for performance of taxable activities .

In the case of the Project implemented by you ( bicycle track of the “(…)” type), the condition specified in Art. 86 section 1 will not be maintained, so you will not be able to deduct VAT . Therefore , the expense will be eligible for reimbursement from the European Agricultural Fund Rural Development under the Rural Development Program 2014-2020.

The position you presented in your application is correct.

Source: sip.lex.pl

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