- Gymnasiums at educational institutions are increasingly used for activities other than educational (not subject to VAT), such as renting to entities conducting sports activities or organizing commercial events (subject to VAT).
- In such situations, tax regulations allow for the deduction of VAT resulting from investment expenditures on their construction or modernization using a so-called pre-coefficient.
- In addition to using pre-coefficients for individual municipalities as specified in the regulation, it is possible to use your own pre-coefficient that “best corresponds to the specifics of the activities performed and the acquisitions made.”
- An example of calculating your own pre-coefficient is the “time method.” It involves calculating the share of the annual number of hours in which the facility is intended for use by external entities (excluding hours of use by internal entities) in the total number of hours of use of the facility in a given year (by external and internal entities).
- Tax authorities do not accept the use of such an individual coefficient. However, administrative courts present a favorable position.
- The correctness of this approach was emphasized, among others, by the WSA in Krakow in a judgment of January 10, 2024, case file I SA/Kr 885/24, in which it recognized that the time method allows for the most precise determination of the part of the deductible VAT attributable solely to the activities carried out by the municipality using sports facilities that are subject to VAT, because the measurement of the time used for each of these activities is clear and precise.
- Depending on the situation and type of expenditure, it is worth considering the use of an individual pre-coefficient that will more accurately reflect the way in which a given expenditure is used.
- Tax regulations allow for the use of other methods of calculating the pre-coefficient than those resulting from the regulation, such as:
- average annual number of people performing work within the framework of individual types of JST activities,
- average annual number of working hours,
- annual turnover,
- average annual area used for a given activity.
- However, it should be remembered that the adopted method of calculating your own pre-coefficient should be as relevant as possible to the situation of a given JST and its units.
- Because this is a rather evaluative matter, it is also worth considering obtaining an individual interpretation confirming the possibility of using a given method of calculating the pre-coefficient before its implementation.
Source: mddp.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.
