- The text discusses a new regulation regarding the recovery of VAT tax in relation to a project aimed at improving competitiveness and profitability of businesses.
- It mentions a letter from the Director of the National Tax Information dated January 31, 2024, stating that the interpretation of the tax consequences described in the request for an individual interpretation is correct.
- The request for interpretation concerns the lack of right to recover VAT tax incurred in the implementation of a project.
- The project is being carried out by a municipality as part of a funding agreement with the Agency for Restructuring and Modernization of Agriculture.
- The project aims to improve competitiveness and profitability in a specific sector and is being implemented in two stages.
- The municipality has incurred expenses for demolition and plans to make purchases related to the project.
- The municipality will not generate any revenue from the project and will not use the goods and services purchased for taxable activities.
- The municipality will provide the purchased items to an association for their use without charging any fees.
- The municipality has included the VAT costs of the project in the eligible costs and received support for the total costs.
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.
