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Polish Court Rules that VAT Applies to Reimbursement of Costs in Court Settlement

  • The Regional Administrative Court in Wrocław ruled that expenses incurred for the renovation of a premises, which were later reimbursed as part of a court settlement, are subject to VAT.
  • The court determined that this reimbursement is considered a paid service and falls under the category of transfer of property rights, regardless of the fact that the taxpayer is engaged in VAT-exempt activities.
  • The case involved a dentist who operates a dental clinic and exclusively provides medical services exempt from VAT.

Source: podatki.gazetaprawna.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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