Poland: VAT exclusion for supply of undertaking or organized part thereof (CJEU judgment)
A CJEU referral judgment concerning VAT exclusion for supply of undertaking or organized part thereof
CJEU judgment concerning VAT exclusion for supply of undertaking or organized part thereof
The Court of Justice of the European Union (CJEU) on 16 February 2023 issued a judgment (case C-729/21) with respect to a question referred by the Supreme Administrative Court related to the scope of application of Article 6 of the Value Added Tax (VAT) Act, which excludes taxation of a supply of an undertaking or an organized part thereof.
The CJEU held that the exclusion applies regardless of legal succession between the seller and the purchaser, and even if not all the tangible and intangible components that make up the enterprise are transferred to the buyer, so long as the transferred assets are sufficient to enable the enterprise to conduct independent economic activity.
Read a February 2023 report prepared by the KPMG member firm in Poland
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