- Farmers paying VAT on compensation for expropriation of real estate
- Farmers who pay VAT on general principles generally pay tax on compensation received when the state takes their land for road construction, and this land belongs to their company’s assets
- However, there will be no tax if the national court (in this case the Supreme Administrative Court) determines that the transaction concerned assets not intended for agricultural activity
- The dispute with the tax authorities will be definitively resolved by the Polish cassation court
- The case involves a farmer who has been raising cows and producing milk on his farm since 2001, registered as a VAT taxpayer in January 2013, acquired land in 2003 and 2015 to expand his farm, and had some of his land expropriated in March 2017 for a road construction project
- The disputed land was used for agricultural production until the expropriation process began, after which the farmer stopped preparing it for the next year’s grass harvest and withdrew it from direct payments, and did not take any actions to facilitate the transfer of ownership of the land
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.
