An overview from CRIDO, Taxand Poland
Recent rulings from Poland’s Supreme Administrative Court have provided greater clarity on several tax issues. In one case, the court confirmed that a former limited partner can continue to use tax losses generated before a group reorganisation, provided the underlying business activity remains unchanged, and the restructuring is supported by genuine commercial reasons.
The court also ruled that regular, interest-bearing loans provided to a special purpose vehicle should not be treated as ancillary financial transactions for VAT purposes. As a result, the related interest income must be included when calculating the VAT recovery ratio. In a separate decision, the court confirmed that the VAT exemption for residential leases only applies to properties that are formally classified as residential. Actual residential use alone is not sufficient where a property is officially recorded as non-residential.
Ania Pleskowicz, Mateusz Stańczyk, Paweł Toński, Maksymilian Górka, Tomasz Koterbski and Maciej Rosiński from our Polish member firm, CRIDO provide a comprehensive overview of what these rulings mean for investment decisions, operating costs and compliance obligations across the real estate sector, which you can read here.