The taxpayer, Makowit, runs a farm with dairy cattle and milk production. Some of the farm’s land was transferred to the Polish State Treasury for road construction, and the taxpayer sought guidance on whether they were liable to pay VAT on the compensation received for the land. The tax authority disagreed, leading to a referral to the court. The court was asked whether a farmer who transfers land to the state for non-agricultural use is obliged to pay VAT on the compensation. The court noted that certain conditions must be met for the compensation to be regarded as a supply of goods, and concluded that the first two conditions were met.
Source KPMG
See also
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- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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