Ruling: Assignment of Receivables and Debt Takeover Exempt from VAT

• The text is a letter from the Director of the National Tax Information regarding the assignment of receivables and assumption of debt not subject to VAT.
• The letter confirms that the company’s position on the tax consequences of the described future event is correct.
• The request for an individual interpretation was submitted on August 4, 2023, and was supplemented on October 11, 2023.
• The request concerns the non-recognition of the assignment of receivables and the assumption of debt as taxable transactions for VAT purposes.
• The company is a limited liability company with unlimited tax liability in Poland and is an active VAT taxpayer.
• The company borrowed loans in 2005 and 2006, which have not been fully repaid.
• The company is considering entering into a debt assignment agreement and a debt assumption agreement with another party.
• The company has doubts about whether the sale of receivables and the debt assumption agreement are subject to VAT.
• The amount of the receivable from the loan assignment will not fully cover the claim of the other party.

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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