In Minister Finansów v Posnania Investment SA (Case C-36/16) (16 February 2017) the advocate general considered that a transfer of land in lieu of payment of tax arrears is not subject to VAT.
A Polish company had settled arrears of tax by means of benefits in kind allowed under Polish tax law by transferring the ownership of a plot of land to the state. The company traded in real estate and the issue was whether the transaction was subject to VAT.
The advocate general thought that the release from a pecuniary liability arising from a supply cannot be treated differently from the establishment of a pecuniary claim on account of a supply. She added that the required legal relationship between the supplier and the recipient was established; it arose from the Polish tax code.
The advocate general considered however that the payment of tax debts...
