WSA Rules Commercial Property Contribution May Be VAT-Free as Going Concern

• The Poznań Provincial Administrative Court ruled that an in-kind contribution of several leased commercial premises can qualify as a transfer of a going concern (a “ZCP”) and therefore fall outside VAT.
• The case involved a business owner transferring commercial units, lease rights, and cash tied to that part of the business into a limited company.
• The tax authority said it was only a transfer of assets, not a ZCP, mainly because it saw insufficient separation and no transfer of liabilities.
• The court disagreed, stressing that the key factor is whether the transferred assets can continue the business function independently; missing liabilities do not automatically prevent ZCP status.
• The ruling is important for reorganizations because proper structuring and documentation of the business function of transferred assets can reduce VAT risk.

Source: crido.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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