VAT exemption on disposal of real estate

On 25th April, 2023, the Supreme Administrative Court referred to the right to dispose goods as owner, which determines whether the transaction can be understood as a supply of goods under the Polish VAT Act.

The court held that a transaction in which a lessor (supplier) disposes of real estate to a third party, on which unsettled expenditures with a lessee remain, meets the definition of a supply of goods both in terms of the disposal of land and disposal of unsettled expenditures made by a lessee – and thus benefits from the statutory VAT exemption.

The court’s position on the VAT consequences of the disposal of real estate may significantly affect the tax authorities’ assessment of such transactions. 

If you have any questions, please contact Joanna Zinko (