On March 3, 2011 the Supreme Administrative Court passed two judgments referring to the question with regard to the VAT rate applicable in case of a sale of a garage together with an apartment. In one judgment (court file no. I FSK 315/10) the Court decided that a developer might apply a decreased VAT rate if this developer is selling an apartment together with an appurtenant car parking space located in an underground parking lot. The Court underlined that in such a case the parking space was not a separate object of market trading. In the other judgment (court file no. I FSK 97/10) the Court recognised that if a garage was a separate real property and might be an object of trading separate from an apartment, then the sale of the garage should be subject to the normal VAT rate.

Contact person: Paweł Nowak, pn@pnplaw.pl