Polish Court: VAT Exemption Applies Despite Change in Acquiring Company’s Share Ownership

• The Supreme Administrative Court ruled that continuity of business operations is key for VAT exemption under Article 6(1) of the VAT Act.
• Transfer of an establishment to an acquiring company that continues the same business activity meets the continuity requirement.
• Change in ownership of shares in the acquiring company is irrelevant, as the legal entity and VAT taxpayer remain the same.
• The transfer does not lead to liquidation of the taxpayer or loss of VAT deduction rights.
• There is no obligation to charge VAT on such a transaction.

Source: kpmg.com

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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