Do structures on the land preclude treating it as undeveloped for the purposes of VAT exemption?

The Supreme Administrative Court (SAC) in Poland has issued a judgment emphasizing the economic nature of land sale transactions when determining the VAT exemption eligibility. The court ruled that besides analyzing the factual state of the land, the economic purpose of the transaction should be taken into account. The presence of inactive gas and heating networks on the land does not necessarily classify it as built-up. The SAC’s decision provides guidance for taxpayers selling land with old structures and highlights the importance of analyzing the nature of the structures and the purpose of the sale to correctly determine the VAT classification.