A company partnering with a city under PPP legislation is building multi-level parking lots, raising questions about VAT treatment.
Public-Private Partnership Framework
The case concerns a company serving as a private partner in a project implemented in cooperation with a city based on the Public-Private Partnership Act (Journal of Laws of 2023, item 1637).
Parking Lot Development Agreement
The agreement between the company and the city provided for the design, financing, construction and operation of multi-story parking lots. The investment is being carried out on land belonging to the city, which was leased to the company.
28-Year Operating Rights
In exchange for implementing this project, the company will receive exclusive rights to operate the parking lots for 28 years.
Revenue Guarantees
The company will be entitled to collect revenues and, in the event that the assumed revenue level is not achieved, a possible payment from the city.