No Right to Deduct VAT from Expenses for the Construction of Shelters – Explanation of Individual Interpretation

• The letter is addressed to the Director of the National Tax Information regarding the interpretation of individual interpretation.
• According to the law on goods and services tax, taxpayers have the right to deduct the amount of tax paid on goods and services used for taxable activities.
• The amount of tax paid is determined by the sum of the tax amounts on invoices received by the taxpayer for the purchase of goods and services.
• If the amount of tax paid is higher than the amount of tax owed, the taxpayer has the right to reduce the tax owed or receive a refund.
• The right to deduct the tax paid only applies to active registered taxpayers and for goods and services used for taxable activities.
• Public authorities and their supporting offices are not considered taxpayers for tasks assigned by separate laws.
• Municipalities are taxpayers for civil law activities, but not for tasks assigned by separate laws.
• The letter confirms that the recipient is an active taxpayer and has carried out a project for the construction of recreational infrastructure.
• The infrastructure is intended for non-commercial use and the recipient does not generate income from its use.
• Therefore, the recipient is not entitled to deduct the tax paid for the project.

Source: sip.lex.pl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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