VAT Implications of Interest-Bearing Loan from Company to Shareholder: Taxation Requirements Explained

• Granting an interest-bearing loan is considered a paid service and is subject to VAT.
• A company that is an active VAT taxpayer but does not operate in financial services provided a one-time interest-bearing loan to a shareholder.
• The company does not have to tax this service with VAT unless it has chosen to tax such services.
• According to the Civil Code, a loan agreement involves transferring ownership of a specified amount of money or goods, with the borrower obliged to return the same amount or goods of the same kind and quality.

Source: podatki.gazetaprawna.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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