- The Supreme Administrative Court ruled that a municipality cannot fully deduct VAT on land infrastructure expenses if part of the investment serves its own public tasks, not economic activity.
- VAT deduction is only allowed to the extent that the municipality’s expenses are related to taxable activities.
- The case involved a municipality equipping its land with infrastructure to increase its attractiveness for sale.
- Not all VAT on such investments can be deducted by the municipality.
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.
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