No Right to Deduct VAT on Expenditures for Pond Development Project – Correct Interpretation

• The Director of the National Tax Information confirms that the taxpayer’s position regarding the VAT deduction for expenses related to a project is correct.
• The taxpayer, a municipality, applied for assistance for a project from the Rural Development Program.
• The project aims to improve the landscape and create a recreational area around a pond.
• The municipality cannot recover the VAT incurred in relation to the project.
• The municipality will conduct a tender for the project and receive a VAT invoice from the contractor.
• The goods and services acquired during the project will be used for non-taxable activities.
• The municipality will not engage in taxable sales related to the project.
• The municipality asks if it has the right to recover the VAT paid to the contractor.

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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