No Right to Deduct VAT from Expenditures for Municipal Cultural Project

• The Director of the National Tax Information confirms that the taxpayer’s position regarding the VAT deduction for expenses related to a cultural project is correct.
• The taxpayer submitted a request for an individual interpretation regarding the right to deduct the VAT amount from invoices for goods and services used for the project.
• The project is funded by the European Regional Development Fund and aims to enhance cultural activities in the municipality.
• The taxpayer, a registered VAT taxpayer, acts as a public authority and not as a VAT taxpayer in the implementation of the project.
• The goods and services acquired for the project will not be used for VAT taxable activities, therefore the taxpayer is not entitled to deduct the input VAT.
• The cultural institution involved in the project is organized by the municipality and is not subject to VAT centralization requirements.

Source: sip.lex.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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