Value-added tax – favorable WSA ruling overturns tax interpretation
Today, the Provincial Administrative Court in Poznań announced a verdict in which, following a complaint filed by a law firm, it overturned a tax interpretation unfavorable to the client with regard to the VAT taxation of the delivery of real estate in connection with its expropriation for the benefit of the State Treasury under the so-called EURO 2012 specs.
The case is multifaceted and complicated, but nevertheless it can be generally stated that, according to the tax authorities, land designated in the local plan for public roads constitutes “land designated for development” within the meaning of the VATU, which is not subject to VAT exemption. Lawyers for the firm questioned this interpretation of the regulations, pointing out that this type of land cannot be developed by the owner, since road investments can only be carried out by
public law entities. In addition, the complaint challenges the view of the Director of the Tax Chamber that the date of determination of compensation for the expropriated property is decisive for assessing the prerequisites for VAT exemption, while according to the law firm, the decisive date should be the date on which the decision on the location of the EURO 2012 project became final, on which the transfer of ownership of the expropriated property took place.