Poland’s Minister of Finance has issued tax technical explanations concerning the circumstances when a commercial real estate sale transaction is to be classified as a sale of an enterprise or an organized part of an enterprise and thus a transaction that is not subject to value added tax (VAT).
According to the technical explanations, the following factors must be considered in determining whether the sale of commercial real estate assets is to be classified as a sale that is outside the scope of VAT:
The determination is to be made at the time of the transaction.
The technical explanations also include a “catalogue of elements” that, while forming an integral part of a commercial property sale, are not to be considered in determining whether a sale of a property constitutes a supply of goods subject to VAT or a sale that is outside of the scope of VAT. These elements include:
Read a December 2018 report [PDF 96 KB] prepared by the KPMG member firm in Poland