Poland: Municipality installing renewable energy systems and removing asbestos not subject to VAT (CJEU judgment)

Neither subsidies received, nor possible contributions made by inhabitants were taxable

Not subject to VAT

The Court of Justice of the European Union (CJEU) on 30 March 2023 issued judgments (case files C-612/21 and C-616/21) that a municipality that installed renewable energy systems on the immovable property of its inhabitants and implemented programs for the removal of asbestos from properties owned by residents did not act as a taxable person for value added tax (VAT) purposes, but as a public authority.

As a result, neither the subsidies received, nor the possible contributions made by the inhabitants were taxable.

The judgments are in line with the opinion of the CJEU Advocate General dated 10 November 2022. Read TaxNewsFlash

Read an April 2023 report prepared by the KPMG member firm in Poland



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