- Passive VAT liability arises from commercialization initiatives.
- A person selling land from personal assets through a professional agent can be considered a VAT subject.
- If land is owned by a married couple, VAT liability can be attributed to their legal community if they jointly sell and assume economic risks.
- The EU Court of Justice ruled on this in case C-213/24 (Grzera) regarding the interpretation of Directive 2006/112/EC.
- The case involved Polish spouses who owned agricultural land and decided to sell it through a professional agent.
- Preparatory operations included subdividing land, changing land registry entries, modifying land use designations, purchasing additional land for access, promoting lots, and preparing sale documents.
- Polish tax authorities considered these sales as economic activities subject to VAT.
- The spouses argued these were personal asset management activities, not subject to VAT.
- The EU Court stated that VAT applies to anyone independently conducting economic activities, including land commercialization.
- Active commercialization initiatives, similar to those of producers or service providers, are relevant for VAT liability.
Source: eutekne.info
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.
