- The Minister of Finance issued an ordinance thanks to which, from May 10, 2022, renting and lease of residential real estate on its own account for the benefit of local government units, their organizational units and one-person companies of local government units – benefits from VAT exemption.
- The exemption may be used on condition that the services are intended for further rental or lease of these real estate to natural persons for their own housing purposes.
Until now, only the rental of residential real estate for residential purposes to end tenants and social rental agencies was exempt from VAT. Other entities accepting real estate for lease, including local government units, could not benefit from such an exemption.
In addition, local government units could not deduct VAT included in the price of rented real estate, due to the fact that their further lease to residents benefited from VAT exemption.
In such a situation, the cost of non-deducted VAT was usually included in the amount of rent, which in practice increased the cost of renting to end users of the property and had a negative impact on the housing policy of local government units.
The regulation entered into force on May 10, 2022.