Buying an investment unit in the Izera Park project is not only an investment in comfort and a second home in an exceptional location, but also a real financial benefit. Investors – both businesses and private individuals – can recover the 23% VAT included in the purchase price. This makes buying an apartment in the Izera Mountains even more profitable. Below we explain who can take advantage of this option and on what terms.
Investment units are becoming an increasingly attractive investment product for both businesses and private individuals not running a business, because they offer the possibility of deducting the 23% VAT charged at purchase. The refund procedure itself is not complicated, but a few conditions must be met and certain formalities completed before signing the contract with the developer. You will find investment units in the offering of the IZERA PARK development.
Who can deduct the 23% VAT in Poland?
A business, a sole trader, and a private individual not running a business who is registered as an active VAT payer.
On what basis can the 23% VAT be deducted?
- The unit purchased must formally be a commercial, non-residential unit, with VAT charged at 23%.
- Income-generating activity must be carried out in the unit; the unit is used to perform activities subject to VAT, e.g. rental.
- Before signing the contract with the developer, the buyer should register with the competent tax office as an active VAT payer (submit a VAT-R form) and provide a NIP (tax identification number).
- Those who do not have one should submit a NIP-7 form to the tax office competent for their place of residence.
- After buying the unit, a VAT-7 declaration and a JPK-VAT file should be submitted, showing the value of output and input tax.
- All invoices are paid from a bank account disclosed in the register of taxpayers (the so-called "white list").
- The VAT refund deadline is between 25 and 180 days from the date of submitting the VAT declaration for the given period in which the refund application was made.
Can I settle VAT on an ongoing basis after each payment to the developer?
Yes; the taxpayer can exercise the right to deduct VAT progressively on the basis of the advance-payment invoices received in connection with the purchase of the unit in question. The taxpayer does not have to wait, in order to deduct, for the formal acquisition of ownership of the unit, nor for the start of renting it out.
Download the VAT-deduction instructions in PDF format
The above information is general and informational in nature and does not constitute tax or legal advice. For a detailed tax interpretation, it is recommended to consult a tax adviser or lawyer.
Get in touch with the Proxin team: sprzedaz@proxin.pl / +48 603 711 805 / izerapark.pl
