Poland – No Right to Deduct VAT from Expenditures for Cybersecurity Project Implementation

• The text is a letter from the Director of the National Tax Information to the recipient.
• The letter confirms that the recipient’s position regarding the VAT deduction from expenses related to a cybersecurity project is correct.
• The letter states that the recipient’s request for an individual interpretation of tax laws was received on August 1, 2023.
• The request concerns the lack of VAT deduction from expenses related to the mentioned project.
• The project involves the modernization of security measures, training for employees, and improvement of public services.
• The recipient, a municipality, is a registered taxpayer and owns the building where the project is being implemented.
• The building is used for both taxable and non-taxable activities, including renting properties and performing public tasks.
• The municipality believes that the expenses incurred for the project serve both taxable and non-taxable activities, and it is difficult to allocate them accurately.
• The municipality also mentions that it has received funding from the European Union for the project and initially declared that VAT would be a qualifying cost.
• However, the municipality is considering changing this declaration based on the possibility of VAT deduction.
• The project must be completed within 18 months from the date of the grant agreement.

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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