The Consequences of VAT Donation of a Family Member’s Business

• Some entrepreneurs decide to transfer their business to a family member as a gift, which has VAT consequences.
• The term “transakcja zbycia” (transaction of transfer) includes activities such as sale, exchange, gift, transfer of ownership, and non-monetary contribution.
• The definition of “przedsiębiorstwo” (business) is not provided in the VAT Act, but it can be referred to in the Civil Code.
• The business includes various components such as name, property, rights from lease agreements, debts, licenses, patents, copyrights, trade secrets, and documents.
• The definition of business in the Civil Code is not exhaustive, and other components not listed can also be considered part of the business.
• The key factors for considering a transaction as a transfer of business are the organized and intended nature of the components for conducting business activities.
• The transaction of a business includes all its components, unless stated otherwise in the legal provisions.

Source: pit.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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