Legal Dispute Over VAT Taxation of Property Sale Deposits

• Dom Development S.A. signed a preliminary sales agreement with three sellers
• Sellers received advances amounting to approximately 10% of the property sale price
• The buying company is registered as an active VAT taxpayer
• The National Tax Information Office ruled that the advances should be subject to VAT taxation at the time of receipt
• The Provincial Administrative Court ruled that advances for future property sales should be subject to VAT taxation at the time of receipt
• The Supreme Administrative Court upheld the position that advances for future property sales should be subject to VAT taxation at the time of receipt

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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