Real Estate Swap and VAT – Key Supreme Administrative Court Ruling
Property swap agreements are increasingly common in business practice. They provide a convenient way to optimise the use of assets without the need to engage additional capital. A key question, however, is how to determine the VAT taxable base when the properties exchanged differ in value and no additional payments are agreed.
Supreme Administrative Court judgment of 10 September 2025
The Supreme Administrative Court (case no. I FSK 1148/22) provided a clear answer. According to the ruling:
The taxable base in a property swap is the actual value of the benefit received, not the value of the property transferred.
Case background
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value of the property transferred by the company: PLN 1,507,900 net,
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value of the property received from company A: PLN 302,300 net,
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the parties agreed on an exchange without any additional payments.
The Court emphasised that since the only consideration received was a plot of land and a heating network worth PLN 302,300, this amount – in line with Article 29a(1) of the VAT Act – constitutes the taxable base.
Significance of the ruling
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Confirms one possible scheme for tax settlements in property swaps.
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Has practical relevance for developers, infrastructure companies, and real estate portfolio managers.
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Highlights that each case should be assessed individually.