- The value of shares issued is the VAT taxable amount when real estate is contributed in exchange for shares
- The European Court of Justice ruled that the VAT taxable amount for the contribution of real estate in exchange for shares should be based on the issuance value of the shares
- The case involved a Polish company, P. sp. z o.o., increasing its capital by transferring real estate and cash in exchange for shares
- The Polish tax authorities argued that the VAT should be calculated based on the nominal value of the shares, not the issuance value
- The European Court of Justice confirmed that the VAT taxable amount should indeed be based on the issuance value of the shares
- The Court emphasized that deviations from the rule should be strictly interpreted and in this case, the issuance value of the shares was not the result of abuse or deviation from the main rule.
Source: taxlive.nl
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.
