VAT Risk Test
If you want to properly account for VAT or PCC (tax on civil law transactions) liabilities arising from the purchase of real estate, use an app that estimates the risks in such transactions.
Purchase of real estate involves the obligation to settle VAT or PCC tax. If you want to properly account for this type of transactions in terms of these taxes – use an app that will estimate the risks in real estate purchase transactions.
WHAT IS THE VAT RISK TEST ABOUT?
The app calculates the risk related to reclassifying a real estate purchase transaction from being subject to VAT to being subject to PCC. The risk is estimated on VAT and PCC grounds, taking into account the grossing up of CIT.
HOW DOES THE APP WORK?
The app works as a calculator. The user provides details of the transaction, including the purpose of the property acquired (commercial or residential), the value of the transaction, the expected date of acquisition.
The app processes the information and returns an estimated risk value. If the transaction was made in a foreign currency, the application converts the given values according to the appropriate exchange rate. The currency exchange rate is taken from the NBP website. The result provided by the app can be used as part of the security provisions in the real estate purchase contract.
Contact with our expert
Wojciech Sztuba
Managing Partner, Tax Advisor
wojciech.sztuba@tpa-group.pl
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