The case of taxation of compensation for expropriation of real estate will be docketed in the Supreme Administrative Court (consisting of 7 judges) once again.
The previous practice caused an obvious harm to owners who are not only deprived of their property but also forced to pay VAT due to expropriation. Tax authorities and administrative courts considered that the compensation received by the owner already includes VAT (gross value). But in fact, this results that the compensation, after deducting the VAT (which must be discharged to the tax office), is less than the value of the property, which authorities have expropriated
