Incorrect Individual Interpretation – VAT Settlement by Municipality in Connection with Agricultural Waste Disposal

• The Director of the National Tax Information states that the taxpayer’s position regarding the tax consequences of future events related to the VAT on agricultural waste removal is incorrect.
• The taxpayer’s request for an individual interpretation concerns the right to deduct full amounts of VAT incurred in relation to the implementation of a specific task and whether the subsidy received from the National Fund for Environmental Protection and Water Management (NFOŚiGW) should be considered as gross value for the purposes of taxation.
• The municipality plans to carry out a project for the removal of agricultural waste, funded by NFOŚiGW. Invoices for the expenses will be issued to the municipality, and individuals participating in the project will make payments to cover the difference between the disposal cost and the subsidy received.
• The project aims to prevent the accumulation of waste on agricultural farms and will be carried out from the signing of the funding agreement until June 30, 2024.
• The municipality will enter into agreements with farm owners for the removal of agricultural waste, and the owners will not have agreements with NFOŚiGW.

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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