Reimbursement of Property Tax by Tenant Is Subject to VAT as Part of Rental Service

• The refund of property tax is considered part of the rent and is subject to VAT.
• VAT is not charged directly on the property tax, but on the rental service, which includes the property tax as a cost element.
• If the tenant reimburses the landlord for the property tax, this reimbursement is VAT-taxable as part of the rental service.
• This clarification was provided by the director of the National Tax Information.
• In the discussed case, the tenant uses the rented space solely for business purposes and covers the property tax cost.

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.

---

---