- Municipalities are required to pay 23% VAT on property contributions to companies, as they are treated like any other VAT taxpayer. However, the companies, often involved in VAT-exempt activities like hospitals or public housing, cannot deduct this tax. This situation creates financial risks for municipalities and discourages them from transferring assets to companies, complicating public investments. Lower courts have challenged this interpretation, and the final decision from the higher court is awaited.
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.
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