Interpretation of the right to deduct VAT on property modernization expenses for cultural center.

The municipality does not have the right to deduct VAT from expenses incurred on the modernization of a property used for free by a cultural center
Official letter from the Director of the National Tax Information dated May 20, 2024
The right to deduct VAT is granted to taxpayers who use goods and services for taxable activities
The deduction can only be made if the goods and services are used for taxable activities
There are exceptions where the taxpayer cannot deduct VAT, such as when the transaction is not taxable or exempt from tax
The taxpayer cannot deduct tax that is only shown on the invoice but not actually due

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.