City Cannot Deduct VAT on Road Construction, Even for Public Transport Use

• The city cannot deduct VAT from road construction and repairs.
• The city acts as a public authority when building roads, thus not paying VAT.
• The Supreme Administrative Court ruled that the use of roads for public transport and revenue from tickets and advertisements does not affect VAT exemption.
• The city wanted to deduct VAT proportionally, arguing that road infrastructure is linked to both public tasks and taxable activities like ticket sales and advertising space rental.

Source: podatki.gazetaprawna.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.

---

---