Ruling: Lack of VAT Deduction Rights for the Creation of a Recreational Area

• The text is a letter from the Director of the National Tax Information regarding the deduction of VAT tax in relation to the creation of a recreational area.
• The letter confirms that the taxpayer’s position regarding the tax consequences of the future event is correct.
• The request for an individual interpretation was submitted on November 17, 2023, and it concerns the lack of right to deduct VAT tax in relation to the project.
• The project involves the development of a recreational area for the residents of a specific location.
• The project will be implemented under the Rural Development Program for the years 2014-2020.
• The taxpayer will not be acting as a VAT taxpayer during the implementation of the project, and the results will not be used for taxable activities.
• The taxpayer’s position is that the municipality will not have the right to deduct VAT tax for expenses related to the construction of public infrastructure.
• The conclusion is that the municipality will not have the possibility to deduct VAT tax in relation to the project.
• The taxpayer’s position is considered to be correct.

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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