Among the numerous changes brought about by the draft Polish Deal adopted by the Sejm (i.e. the act amending the act on personal income tax, the act on corporate income tax and some other acts), there are provisions relating to VAT taxation of for the conversion of perpetual usufruct into ownership.
The draft of the Polish Deal provides for a change in the wording of Art. 19a paragraph. 5 point 1 lit. b of the VAT Act, so that the tax obligation in VAT also arises in the case of the transfer by virtue of the ownership of goods in exchange for compensation. It follows from the justification to the draft act that the intention of the legislator is that the transformation fees, i.e. fees for the transformation of the right of perpetual usufruct into the right of ownership, made pursuant to the Act of 20 July 2018 on the conversion of the right of perpetual usufruct of land developed for the purposes of housing into the ownership right to these lands (Journal of Laws of 2020, item 2040; hereinafter: the Act on transformation). Thus, the legislator aims to adapt the provisions of the VAT Act to the conclusions of the CJEU judgment of 25 February 2021 (C-604/19).
Source Deloitte
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