Comments on ECJ case C-697/20: Asset Transfers Between Spouses’ Separate Businesses: Recent Legal Developments and Tax Implications

• Spouses running separate businesses under community property in Poland are now recognized as separate VAT taxpayers if each acts independently.
• The ECJ and Poland’s Supreme Administrative Court have ruled that intra-spousal business transactions, including asset transfers, are taxable under VAT law.
• The property regime (community property) is irrelevant; what matters is economic independence and separate business activity.
• Transfers of goods between spouses’ businesses, even if gratuitous and involving jointly owned assets, are considered taxable supplies for VAT purposes.
• Entrepreneurs must exercise caution in tax planning for intra-spousal transactions due to this clarified legal position.

Source: kancelaria-skarbiec.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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