- 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.
