- Withdrawing business assets for personal use can create a VAT liability, even if it has no PIT consequence.
- Under Article 7(2) of the VAT Act, gratuitous transfer of enterprise goods for personal use is treated as a taxable supply if input VAT was deductible on purchase, import, or manufacture.
- This applies not only after full VAT deduction, but also after partial deduction, such as the common 50% deduction for passenger vehicles used both business and privately.
- Real estate withdrawn for personal use may also be subject to VAT if input tax was deductible when it was bought or built.
- Taxpayers must check conditions like first occupation, elapsed time, later improvements, and exemptions to determine the correct VAT treatment.
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.
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