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Ruling: VAT on the sale of real estate by an individual

  • The text is a letter regarding the interpretation of VAT on the sale of real estate by an individual.
  • The letter confirms the correct interpretation of the tax consequences for the sale of a developed plot of land and the inability to apply VAT exemption for the sale of an undeveloped plot.
  • The request for an individual interpretation was submitted on September 29, 2023, and the letter provides a description of the factual situation and future events related to the sale of the property.
  • The property in question was originally part of a larger agricultural farm that was gifted to the recipient by their father in 1994.
  • The farm was divided in October 2006 due to the construction of a highway, resulting in two remaining plots of land: one developed and one undeveloped.
  • The construction of the highway rendered the land unsuitable for agricultural use, and a new local spatial development plan changed the land’s designation to industrial and residential use.
  • In 2008, the recipient further divided the developed plot into a residential-commercial area and an industrial-commercial area, selling the undeveloped plot.
  • The letter references a previous tax interpretation obtained by the recipient for the planned transaction.

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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