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Ruling: VAT on the contribution of real estate by the commune

The commune is a partner of the company SIM “X” The company was established to implement social housing, addressed to people and families who do not own a dwelling and are unable to buy it (lack of creditworthiness), but their stable financial situation allows them to regularly pay a moderate rent. The company carries out residential investments on real estate, which was contributed as an in-kind contribution by Krajowy Zasó Nieruchomości or other partners. The Company does not have any real estate in the area of ​​the commune, therefore, in order to enable the implementation of a residential investment, it is necessary for the commune to contribute the ownership right to an undeveloped land property, designated in the local spatial development plan for multi-family housing development. The value of the property marked as plot no. 1 was estimated by a property appraiser. Therefore, in return for contributing the ownership right to the real estate in question, the Municipality will acquire shares in this Company.

Source: sip.lex.pl

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