City Can Partially Deduct VAT on Infrastructure Expenses, Court Rules

• City can partially deduct VAT on expenses for accompanying infrastructure
• This applies when expenses are part of a main investment project also used for business activities
• The Supreme Administrative Court ruled in favor of the city’s right to deduct VAT
• The case involved the redevelopment of a tram line with accompanying infrastructure like driveways, sidewalks, bike paths, and parking
• Some infrastructure will be leased to entities paying VAT-inclusive rent
• The dispute with tax authorities concerned the supplementary infrastructure
• The city argued it would be used for both business and other purposes, justifying partial VAT deduction according to the VAT Act

Source: podatki.gazetaprawna.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.