- VAT applies to compensation for expropriation of agricultural land
- Farmers paying VAT under general rules will pay tax on compensation received when the state takes their land for road construction
- The tax must be paid even if the farmer is not involved in real estate transactions or has not taken any steps to transfer ownership to the State Treasury
- An exception is when expropriation involves land that is part of private property
- The national court (in this case, the Polish administrative court) should assess whether this exception applies
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.
