Exemption from VAT of a plot partially built up with a road

• The Krakow Provincial Administrative Court issued a judgment overruling the National Tax Authority’s interpretation of the value added tax (VAT) exemption on the sale of a plot of land.
• The case concerns a piece of land on which there is an asphalt surface and which will be sold by the province.
• The tax authority considered that only the VAT exemption applies to the part of the land on which the asphalt surface is located, while the rest of the land would not be exempt.
• The province appealed and the provincial administrative court overturned the interpretation, arguing that the VAT exemption applies to both the building or structure and the entire land in the case of land on which a structure, such as an asphalt surface, is located that was not built as part of the first settlement or when more than two years have passed between the first settlement and the delivery of the building, structure or part thereof.
• This ruling is consistent with prior case law and doctrine in similar cases and is favorable to taxpayers.

Source MDDP

---

---