Compensation for Demolition Not Subject to VAT, Rules Supreme Administrative Court

• Compensation for necessary demolition of part of a building is not subject to VAT.
• The demolition is due to a road investment causing loss of functionality.
• The Supreme Administrative Court ruled it is not a payment for a service.
• The dispute involved compensation for demolition on land under perpetual usufruct.
• The building is partially on land designated for road investment and partially on adjacent land.
• Demolition of the part on expropriated land necessitates demolition of the remaining part.
• The company will receive compensation from the municipality as the road manager.

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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