Thermomodernization relief VAT – can the relief be applied if the VAT from the invoice has already been deducted in the business? Yes — it is possible to settle the investment in a way that allows you to benefit both from the VAT deduction and from the PIT relief, provided that you do not deduct the same amount twice. Recently, an article was published in Rzeczpospolita featuring a comment by dr Piotr Sekulski on this issue.
Thermomodernization relief VAT: does a house “rented out as part of a business” exclude the relief?
No. In its Tax Explanations, the Minister of Finance explicitly confirmed that using a building for business activity (e.g., renting it out to tourists) does not exclude the relief — neither the PIT Act nor the lump-sum tax (ryczałt) regulations contain such a “negative prerequisite”.
In practice, this is important because many entrepreneurs settle rental income on a lump-sum basis (or combine rental with other business activity) and fear that a “business” context automatically blocks the possibility of claiming the deduction.
What about VAT deducted in the business?
The key rule is simple: you cannot deduct the same amount twice. If the VAT from the invoice was deducted in the VAT return, then under the thermomodernization relief (PIT) what essentially remains is the net value of the expense. This follows from the structure of the relief itself.
In the article available under the link , you will find plenty of interesting information on the topic of thermomodernization relief VAT.
tax advisor Piotr Sekulski, PhD
„No. The fact that the reader deducted VAT does not exclude the PIT relief. This follows from Article 26h(4) of the PIT Act. This provision states that we deduct the expense together with VAT, provided that this VAT has not been deducted. It follows that if VAT has been deducted, the relief applies to the net amount.”.
By the way: the list of expenses covered by the relief results from a regulation (it explicitly includes, among others, window joinery) — of course provided that the investment is part of a thermomodernization proje
If you would like to check whether, in your case, the thermomodernization relief will be safe (and how to calculate it under lump-sum / progressive scale / flat tax) — we invite you to visit www.outsourced.pl .
