Ruling: No right to deduct VAT in connection with the implementation of the project – construction of a football field with a synthetic grass surface

The Director of the National Tax Information has issued an individual interpretation stating that a municipality will not be entitled to deduct VAT in connection with the construction of a football field with a synthetic grass surface, as the pitch will be open to the public and free of charge, and the municipality will not perform any VAT-taxable activities.
This interpretation is based on Art. 86 sec. 1 of the Act of March 11, 2004 on tax on goods and services, which allows taxpayers to deduct input tax to the extent that goods and services are used for taxable activities.
The interpretation concludes that the position presented in the application is correct.