A municipality that helps its taxpayers will lose financially

If a municipality waives certain amounts due to it from a company, such as a real estate tax, it will lose twice. It will not get the tax and will receive less money as part of a subsidy. This is the principle the government wants to introduce in the next version of the anti-crisis shield regulations. The poorest municipalities will lose the most on this change. On the other hand, the regulations that are already in force provide that a local government must pay VAT in the case of releasing tenants from rent. According to experts, this is absurd.

Despite the fact that a landlord cannot require a tenant to make payments of rent during the trade prohibition, it should, nevertheless, issue rent invoices on a regular basis during the trade prohibition, pay VAT on such invoices, and disclose revenues – Małgorzata Militz emphasizes.

A commentary by the VAT expert, Małgorzata Militz, can be found in today's article Prawo.pl: https://www.prawo.pl/podatki/umorzenie-podatkow-przez-gminy-a-subwencja-wyrownawcza,499950.html