NSA vs. CJEU – VAT Implications in Real Estate Sales
Does every real estate sale involving a representative trigger VAT? The CJEU’s ruling in the Grzera case (C-213/24) suggests it might, particularly when the seller uses a professional representative. However, in a recent judgment (I FSK 2150/21), Poland’s Supreme Administrative Court (NSA) offers a more cautious view — not every such transaction implies the conduct of an economic activity. A detailed, case-by-case analysis remains essential.
In the Grzera case (C-213/24), the Court of Justice of the European Union (CJEU) ruled that a seller who acts through a professional representative may be considered a taxable person for VAT purposes.
However, in its judgment of 23 April 2025 (I FSK 2150/21), the Polish Supreme Administrative Court (NSA) emphasized that the CJEU’s ruling does not apply automatically to every real estate transaction involving a representative. If the representative is the buyer acting in their own interest, there are no grounds to conclude that the seller is engaged in an economic activity. In such cases, the transaction may fall outside the scope of VAT.
Conclusion:
Appointing a representative by the seller does not automatically trigger VAT liability on the sale of real estate. Each transaction must be assessed on a case-by-case basis – superficial similarities do not necessarily lead to the same tax consequences.