No right to deduct VAT by municipality in connection with investment in water reservoir

• The text is about a letter regarding the interpretation of tax consequences related to the construction of a water reservoir.
• The letter confirms that the municipality does not have the right to deduct VAT in relation to the construction project.
• The construction project involves building a fenced water reservoir with necessary equipment for its proper functioning.
• The reservoir will serve as a retention tank and will not be used for recreational or tourism purposes.
• The municipality requested clarification on whether they can deduct the VAT paid for expenses related to the project.
• The letter confirms that the municipality does not have the right to deduct the VAT.

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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