VAT on Contribution Considered in Share Acquisition Costs, Court Rules

• The expense for acquiring shares includes VAT from the contribution.
• The Supreme Administrative Court ruled that income from a partner leaving a company can be reduced by the net purchase price of real estate contributed to the company and the VAT paid on the contribution.
• The tax authority considers the expense to be only the net amount.
• VAT is part of the price.
• The expense is significant at the time of the contribution.
• The company planned to leave limited partnerships to which it had previously contributed real estate.
• It believed both the net purchase price and VAT should be considered expenses for acquiring shares.
• The company intended to reduce its income from leaving the partnerships by these amounts, according to the amended law from November 28, 2020.
• The company argued that since the tax was actually paid, it should be recognized as related to acquiring shares.

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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