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SPCG Successful for Krakow City Park Dispute on VAT Exemption Dispute

SPCG Successful for Krakow City Park Dispute on VAT Exemption Dispute

Poland
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Studnicki Pleszka Cwiakalski Gorski has successfully represented Krakow City Park Sp. z o.o. in a dispute with Polish tax authorities regarding the interpretation of VAT exemption regulations.

The case concerned the interpretation of provisions related to the the exemption from VAT on the sale of undeveloped land, the main purpose of which in the local zoning plan has been defined as green areas and water, with the possibility to build specific construction facilities to serve the basic purpose on these areas. The tax authority decided that this possibility indicates the allocation of land for development, therefore the sale of these areas is not exempt from VAT.

The Provincial Administrative Court in Krakow disagreed with the position of the tax authority, supporting the arguments of Krakow City Park, holding that the possibility of constructing any building in a given area does not prejudge the qualification of the area as an area designated for development.

The Supreme Administrative Court also agreed with Krakow City Park’s position, and in October 19, 2018, dismissed the cassation appeal of the tax authority.

SPCG Partner Agnieszka Soja led the firm's representation of Krakow City Park.

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