Ruling: VAT Settlement by Municipality in Relation to Water and Sewage Management

• The text is a letter from the Director of the National Tax Information to the recipient.
• The letter confirms that the recipient’s position on the tax implications of water supply services is correct.
• The recipient had submitted a request for an individual interpretation regarding the taxation of water supply services and the right to deduct VAT.
• The recipient is a registered taxpayer and provides water supply services to external recipients.
• The recipient also provides water supply services within its own organizational structure.
• The recipient incurs investment expenses related to water infrastructure.
• The recipient emphasizes that the expenses are directly related to the infrastructure and cannot be directly allocated to taxable or non-taxable activities.
• The infrastructure is primarily used for the recipient’s taxable activities of providing water supply services to external recipients.
• The infrastructure is also used to a lesser extent for internal water supply purposes.
• The recipient is considering using a pre-coefficient calculation method.

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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