- After 10 years, no VAT adjustment is required for liquidation inventory if buildings are shown with exemption under specific VAT law.
- An example involves a business owner who liquidated their company in 2025 and filed a VAT cessation notice.
- The owner bought a property in 2010, conducted renovations, and fully deducted VAT from renovation expenses.
- The building was used for VAT-taxed activities and no further expenses were incurred after it was put into use.
- Upon liquidation, the building was taken for personal use and shown in the liquidation inventory with a VAT exemption.
- The issue is whether a VAT adjustment is needed for renovation expenses due to business cessation.
- VAT law outlines when and how VAT adjustments should be made, especially for fixed assets.
- Generally, VAT adjustments are required if the use of goods or services changes after VAT deduction.
- In this case, the owner had full VAT deduction rights for renovation expenses, and adjustments may be needed under specific VAT law provisions.
Source: prawo.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.
