Ruling: Input VAT on Invoices Documenting Expenses for Construction of Wooden Sheds

• The text discusses a letter from the Director of the National Tax Information regarding the deduction of VAT from invoices documenting expenses incurred in the construction of four wooden shelters with accompanying infrastructure.
• The letter confirms that the taxpayer’s position regarding the tax consequences of the described factual situation in the VAT is correct.
• The request for an individual interpretation was submitted by the municipality, which is responsible for carrying out assigned tasks, including the construction of recreational areas and sports facilities.
• The municipality completed a project in 2023, which involved the construction of four wooden shelters and accompanying infrastructure.
• The project was financed both by the municipality and external funds, including funding from the Rural Development Program.
• The purpose of the project was to develop publicly accessible and non-commercial recreational infrastructure.
• The expenses incurred by the municipality were documented with VAT invoices.
• The infrastructure created through the project will be publicly accessible and provided free of charge to the community.
• The municipality is seeking clarification on whether it has the right to deduct the VAT from the invoices documenting the expenses incurred in the project.

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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