- Currently, the tax authorities state that entrepreneurs can only apply an 8% VAT rate when constructing residential buildings for permanent residence.
- Previously, the tax authorities had a different stance, requiring a 23% VAT rate for building holiday or recreational cottages.
- There is a risk of high tax penalties for those who trusted the previous tax authorities’ stance on VAT rates for holiday cottages.
- It is suggested that the reduced VAT rate for holiday cottages may be challenged by the European Commission, as it is typically reserved for social housing.
- Entrepreneurs facing potential tax penalties should rely on the established interpretative practice until the end of 2020, which allowed for the 8% VAT rate for holiday cottages.
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.
