- No right to deduct VAT in whole or in part from expenses incurred for the purpose of improving water management, including fertilization and pesticide use, through the reconstruction of a retention tank
- The municipality is a VAT taxpayer and plans to carry out a project to improve water management through the reconstruction of a retention tank
- The municipality will not use the infrastructure for taxable activities
- The municipality is not a VAT taxpayer conducting business activities, but a public authority carrying out a public law obligation to protect the environment
- Question: Does the municipality have the right to deduct VAT from expenses incurred in carrying out the project?
- According to the taxpayer, the right to reduce the amount of tax due by the amount of input tax is granted to the extent that the project will be used for taxable activities. Expenses incurred by the municipality in connection with the project are not related to taxable activities.
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.
