- The text discusses a letter from the Director of the National Tax Information regarding the right to deduct the full amount of VAT from purchase invoices related to the construction of residential properties, garage spaces, and parking spaces in a garage hall.
- The letter confirms that the taxpayer’s position regarding the tax consequences of the described factual situation is correct.
- The request for an individual interpretation concerns the right to deduct VAT from purchase invoices related to the construction of garage spaces and parking spaces in a garage hall, the lack of right to deduct VAT from purchase invoices related to the construction of residential properties, and the right to deduct VAT from expenses incurred for both residential properties and garage spaces.
- The taxpayer is a non-profit company engaged in the construction and rental of affordable housing.
- The company is also involved in other activities related to housing construction and infrastructure.
- The company has started construction projects for multi-family residential buildings with garage spaces and parking spaces for rent.
- The company plans to use the buildings for taxable activities subject to VAT.
- The company will incur expenses directly related to each specific property or garage space.
- In cases where direct allocation is not possible, the company will determine the VAT based on proportions.
- The company will also incur general management costs necessary for the completion of the project.
- The company had a turnover exceeding 30,000 PLN in the year prior to the start of the project, with the majority of the revenue being from VAT-exempt activities.
- The company’s VAT deduction rate for the year prior to the start of the project was 21%, and for the following year, it was 22%.
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.