- The Supreme Administrative Court (NSA) ruled that cultural institutions, such as museums, can deduct 100% VAT on investments without applying the pre-proportion method.
- This decision overturns previous unfavorable rulings for taxpayers and is significant for various cultural entities like theaters, galleries, and libraries.
- The court stated that tax authorities cannot deny full VAT deduction solely because the investment is made by a cultural institution.
- Each case requires detailed analysis of expenses and their allocation to VAT-related activities, rather than automatic application of VAT restrictions.
- The case involved a museum seeking confirmation of its right to fully deduct VAT on EU co-financed renovation projects.
Source: prawo.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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