VAT Exemption and Deduction of Input Tax in Real Estate Transactions: Correct Position

• Taxpayers in Poland have the option to waive the tax exemption on the sale of real estate and choose to be taxed on the transaction.
• The delivery of shares in ownership rights to structures and land will be subject to VAT if the exemption is waived.
• The right to reduce the amount of VAT due by the amount of input VAT is granted when certain conditions are met.
• The taxpayer must meet positive conditions and avoid negative conditions specified in the VAT Act to deduct input tax.
• Invoices and customs documents do not constitute the basis for reducing or refunding tax if the transaction is not subject to taxation or exempt from tax.
• The buyer of a plot of land for business activities subject to VAT has the right to reduce the amount of tax due by the amount of input tax.
• The buyer can also refund the difference between input tax and tax due or reduce the amount of tax due for future periods.
• The interpretation only applies to the specific matter presented in the request and does not cover other issues.
• The validity of the VAT refund falls under the jurisdiction of the tax authority responsible for the purchaser.

Source: sip.lex.pl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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