- NSA ruled that a company cannot claim VAT exemption on the sale of real estate purchased from individuals without VAT.
- The company acquired the land from individuals not engaged in business, making the transaction non-VATable.
- The company sought an individual interpretation to confirm the possibility of applying the VAT exemption.
- The tax authority and the Administrative Court rejected the company’s claim.
- NSA upheld the previous rulings, stating that the exemption applies only when the taxpayer lacks the right to deduct VAT due to restrictions in the VAT Directive or the VAT Act.
- The court emphasized that the exemption does not apply when the lack of deduction stems from the transaction not being subject to VAT or when the taxpayer, despite having the right to deduct input VAT, did not exercise it.
- NSA also ruled that the company did not meet the requirement of using the acquired property exclusively for exempt activities, as the property was intended for resale.
- The court cited the CJEU ruling in Generali Seguros SA, which clarified that “used” in the VAT Directive refers to the use of goods for a specific purpose within the taxpayer’s business, not for resale.
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.
