Confirmation letter

-3810 428625 0 0 1076325 9772650 TALLINN UNIVERSITY OF TECHNOLOGY Ehitajate tee 5 19086 Tallinn, Estonia Registry code 74000323 Phone +372 620 2002 E-mail [email protected] www.taltech.ee 0 0 TALLINN UNIVERSITY OF TECHNOLOGY Ehitajate tee 5 19086 Tallinn, Estonia Registry code 74000323 Phone +372 620 2002 E-mail [email protected] www.taltech.ee 5873115 428625 0 0 European Commission December 2024 No . delta_regNumber 11-13/1631-1 Confirmation letter According to subsection 2 (2) of the Value-Added Tax Act, the activities of legal persons in public law are deemed to be business only where such persons engage in economic activities listed in Annex D to the sixth Directive or where their activities involve transactions and acts listed in subsection 1 (1) of the Value-Added Tax Act which may also be performed by other taxable persons and where non-taxation would lead to significant distortions of competition. Tallinn University of Technology has been registered as a person liable to value added tax and upon deduction of input value added tax we use the method combining direct calculation and proportional deduction. Receipts from research and development projects are not deemed to be economic activities of Tallinn University of Technology. Input value added tax is not deducted on goods and services (except on fixed assets) purchased for the purposes of such activities. Consequently, no refund is paid by the Tax and Customs Board, the input value added tax is written off. Upon acquisition of fixed assets, Tallinn University of Technology uses the method of proportional deduction for deduction of input value added tax. This means that a proportion of the value added tax is reclaimed from the Tax and Customs Board and the rest is written off. The activities carried out in the framework of the project „ High Performance Bio-based Functional Coatings for Wood and Decorative Applications “ are not economic activities of Tallinn University of Technology, these are regarded as research. Thus, the input value added tax on purchases related to this project is written off. Yours sincerely, Ave Tamm Chief Accountant