Stores the user's cookie consent status for the current domain.
VAT on the family gift of a business. Paczuski Taudul expert comments on the EU Court’s ruling in Rzeczpospolita
Can transferring a business to one’s children be exempt from VAT? Piotr Stryjewski, attorney-at-law and tax advisor at Paczuski Taudul, comments on the EU Court’s ruling concerning family business succession in Rzeczpospolita.
The case concerned a business owner who intended to transfer her enterprise to her two daughters in equal shares. The daughters were then to contribute the assets they received to a general partnership and continue running the business.
The tax authorities argued that the VAT exclusion could not apply because neither daughter had received an independent business, but only a share of its individual assets. The EU Court agreed with this position.
“This is a warning to Polish entrepreneurs preparing to transfer their businesses. The Court ruled that if they do not transfer the entire business, but only half of it, they will not be able to benefit from the VAT exclusion,” says Piotr Stryjewski, attorney-at-law and tax advisor at Paczuski Taudul.
We warmly recommend reading the full article by Przemysław Wojtasik.