- A property contributed to a company as a contribution for business purposes must be organizationally, financially, and functionally separated in order for the contribution to be considered a sale of an organized part of the enterprise and qualify for VAT exemption.
- The property must be separated in three areas: organizational, financial, and functional.
- The sale of an organized part of the enterprise is not subject to VAT.
- The separated part must be able to operate independently and be capable of continuing the activities of the seller.
- The property being contributed must not be currently used by the contributing enterprise and will be used for a different purpose.
- If the contributed assets are not considered an organized part of the enterprise, the transaction will be subject to VAT.
Source: ksiegowosc.infor.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.
