Impact of NSA ruling on VAT rate for assignment of developer agreement rights with 23% VAT

• On June 24, 2024, the NSA ruled that the assignment of rights from a developer agreement is subject to a 23% VAT rate.
• The NSA stated that the assignment of rights does not constitute a reduced VAT rate applicable to the supply of residential premises.
• The court emphasized that the payment for the assignment of rights determines the existence of consideration for the assignment.
• The NSA concluded that the transfer of rights and obligations from a developer agreement for consideration in the form of remuneration constitutes a taxable service at a standard VAT rate of 23%.
• The ruling is significant for developers and investors due to conflicting case law on the taxation of assignments.
• Taxpayers should analyze their past assignments in light of the ruling to assess potential tax liabilities and the need for corrections.
• Changes in VAT rates may result in tax arrears and potential price increases for customers.

Source: mddp.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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