- The Director of the National Tax Information confirms that the taxpayer’s position regarding the VAT deduction for expenses related to a project is correct.
- The taxpayer, a municipality, applied for assistance for a project from the Rural Development Program.
- The project aims to improve the landscape and create a recreational area around a pond.
- The municipality cannot recover the VAT incurred in relation to the project.
- The municipality will conduct a tender for the project and receive a VAT invoice from the contractor.
- The goods and services acquired during the project will be used for non-taxable activities.
- The municipality will not engage in taxable sales related to the project.
- The municipality asks if it has the right to recover the VAT paid to the contractor.
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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