Transfer of Building on Leased Land: Is It a VAT-Taxable Supply?

• The transfer of a building erected on leased land is considered a supply of goods under VAT law, even though civil law treats the building as part of the land.
• When a lessee transfers a building they constructed on leased land back to the landowner, it qualifies as a taxable supply under Article 7(1) of the VAT Act, according to the Supreme Administrative Court.
• Tax authorities view the reimbursement for the building as a service, while courts classify it as a supply of goods.
• The supply of the building may be exempt from VAT.
• The case involved a company that built a radiotherapy center on hospital-leased land; after the lease ended, the land and building were returned to the hospital.

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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