Taxation of Land Sales Used in Business Activities: Case Study Analysis and Implications

• The sale of land by the Applicant, which was used in their business activities, will be subject to VAT.
• The Applicant purchased a farm in 2002 and conducted agricultural activities as a flat-rate farmer.
• In 2020, the Applicant signed a preliminary lease agreement with a photovoltaic company, indicating the intention to use the land for profit.
• In 2024, the Applicant entered into lease agreements for land intended for sale, confirming that the land was used in their business activities.
• The sale of the land by the Applicant will be subject to VAT as it was used in their business activities and not considered private property.
• The fact that the Applicant was a flat-rate farmer is irrelevant as the land was not solely used for agricultural purposes.
• The Applicant did not take active steps in real estate trading, such as land development or marketing activities, indicating a business in real estate trading.

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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