The Supreme Administrative Court last Wednesday (ie September 29, 2021) took an important resolution up on the tax definition of the building. Pursuant to the resolution, a building structure within the meaning of Art. 3 point 3 of the Construction Law may in this context be classified as a building from a tax perspective.
The main criterion is meeting the definition of a building (the object should be permanently connected to the ground, have a roof with foundations, be separated from the public area and fulfill a utility function). Until now, numerous controversies have aroused in the doctrine and jurisprudence on constructions with the features of a building, such as: silos, bunkers or tanks.
The resolution of the Supreme Administrative Court (file number III FPS 1/21) was long awaited by both the tax authorities and the taxpayers themselves. In the opinion of the chairman of the composition of the Supreme Administrative Court, the basic feature of a building and the basis for its taxation is the usable area. The purpose of the tax act is to achieve a specific fiscal objective, unlike the construction law. Therefore, in order to identify the subject of taxation related to a building, one should take into account the tax base, i.e. its usable area. This pronunciation of the resolution will be of key importance for the taxation of building objects, such as silos or tanks, the main feature of which, however, is not their area, but their capacity or cubature. They can still be classified as structures. However, the resolution states that in the case of real estate tax, each case should be treated individually, taking into account the specific nature of the areas regulated by this tax.