Ruling: Deducting VAT from municipality expenses on mobile application

• The text is a letter from the Director of the National Tax Information to the recipient.
• The recipient’s position on the tax implications of the municipality’s expenses on a mobile application is deemed correct.
• The letter refers to a request for an individual interpretation regarding the partial deduction of the incurred tax related to a project.
• The municipality is a legal entity and is subject to VAT.
• The municipality carries out both non-economic activities and economic activities.
• The municipality is implementing a grant project as part of the Digital Poland Operational Program.
• The project includes the development of a mobile application and the improvement of the municipality’s website.
• The project aims to enhance digital resilience and address the negative effects of the COVID-19 pandemic.
• The municipality plans to collaborate with a specific organization for electronic communication and e-invoicing.
• The municipality also plans to enhance its digital security and upgrade its IT infrastructure.
• The project’s value is undisclosed, and the municipality has set a coefficient of 3% for 2023.

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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