VAT on Non-Monetary Contributions: ECJ Ruling on Tax Base Calculation for VAT Aportation Transactions

• TSUE issued a ruling regarding the basis of VAT taxation on non-monetary contributions
• Taxpayers must determine the basis of taxation, whether VAT should be calculated on the nominal or issuance value
• The TSUE ruling allows taxpayers to determine the basis of taxation for transactions involving the acquisition of shares in exchange for non-monetary contributions
• The tax authority challenged the issuance value of shares as the basis of taxation, which was confirmed by the appellate body and administrative court
• The appellant filed a cassation appeal to the NSA, which asked the TSUE about the nominal or issuance value as the basis of taxation
• TSUE emphasized that the nominal value of shares is not clearly defined in Polish law.

Source: mddp.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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