Partial VAT Deduction Rights for Expenditures Related to Municipal Office Building Modernization

• The text is about the right to partially deduct VAT from expenses related to the modernization of a municipal office building.
• The letter confirms that the taxpayer’s position regarding the tax consequences of the described factual situation and future event in VAT is correct.
• The request for an individual interpretation was submitted on October 9, 2023, and it concerns the right to deduct VAT from expenses related to the implementation of two investments.
• The municipality is a registered active VAT taxpayer and performs tasks imposed on it by separate legal provisions.
• The municipality can carry out both VAT taxable transactions and VAT-exempt transactions based on civil law contracts.
• The municipality incurs various expenses for which suppliers issue VAT invoices.
• The municipality is currently carrying out two investments: “Modernization” and “Digitization.”
• The modernization includes work on the municipal office building where the municipality is located.

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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