- Leasing of property under a lease agreement is considered a taxable service under VAT.
- Company Y signed a lease agreement for undeveloped land with Company X on April 3, 2025.
- The lease is for three years from June 1, 2025, to May 31, 2028.
- Annual rent is 10,000 PLN net, with a deposit of 5,000 PLN due by the end of April 2025.
- Company Y received the deposit on April 10, 2025, but has not received the rent for the period from June 1, 2025, to May 31, 2026.
- No invoices have been issued for the deposit or the first year’s rent.
- There are no connections between Company Y and Company X as per VAT law.
- The company’s tax year is the calendar year, with a CIT rate of 19 percent.
- VAT and CIT advances are settled monthly on a general basis.
- VAT applies to the supply of goods and services within the country.
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.
