VAT Rate on Collective Residential Buildings in Poland: Recent Changes and Implications

• The tax authorities in Poland have changed their position on the VAT taxation of construction works related to residential buildings.
• According to the current approach, not all residential buildings qualify for the reduced 8% VAT rate.
• The tax authorities now consider the appropriate VAT rate for such buildings to be 23%.
• The regulations require the fulfillment of certain conditions for the application of the 8% VAT rate, including that the construction activities are related to buildings covered by a social housing program.
• Residential buildings classified under section 11 of the Polish Classification of Building Objects (PKOB) are considered as qualifying for the 8% VAT rate.
• However, the tax authorities now require these buildings to also be used for permanent residence in order to qualify for the preferential VAT rate.
• The incorrect application of the VAT rate may have consequences, and past transactions may be subject to review.
• It is important to secure one’s tax position and take appropriate steps in transactions and public procurement procedures.
• The topic will be discussed in a webinar on November 16, 2023, organized by Enodo Advisors.

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.

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