No-Supply Rule and Real Estate Transactions

Transactions involving real estate used for business purposes have recently proved to be particularly risky in Poland because the tax authorities consider that supplies of real estate are often to be treated as transfers of a going concern and, as a result, that a no-supply rule should apply to them. In this article, the author analyses the wording and purpose of the “no-supply rule” provided for under the VAT Directive and its equivalent in Polish domestic legislation and discusses possible measures to be taken to reduce VAT risks connected with real estate transactions.