- Local governments (JST) can deduct input VAT only for activities subject to VAT.
- When JSTs perform both VAT-taxable and non-taxable activities, they must use an appropriate VAT pre-proportion (prewspółczynnik).
- JSTs can propose their own method for calculating the pre-proportion, but strong justification is essential.
- The calculation does not need to be exact to the last cent.
- Recent rulings by the Supreme Administrative Court (NSA) in 2025 provide guidance on these issues.
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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