Compensation for expropriated private land is VAT exempt – Gazeta Prawna

• Compensation for expropriated private land is exempt from VAT
• If commercial activity was conducted on the land, compensation for expropriation is subject to VAT
• The Supreme Administrative Court in Gdańsk ruled that leasing private land does not constitute commercial activity
• A man bought agricultural land in 1998, which was not covered by a local spatial development plan and was purchased without VAT
• The land became part of the private estate under marital community property, even though the couple conducted business together from 1996-2005
• Since 2006, only the wife continues the business, including real estate transactions, but the land was never used for business purposes

Source: podatki.gazetaprawna.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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