A marriage may be regarded as a VAT taxpayer! – Groundbreaking CJEU ruling in Case C-213/24, Grzera

On 3^rd April 2025, the CJEU delivered a highly significant judgment in the Polish Case C-213/24, Grzera. The ruling concerns, firstly, whether a seller can be considered a VAT taxpayer if they order the preparation of the transaction to a professional, whose activities resulted in making the plots more attractive. Secondly – and perhaps most importantly – whether a marriage under a joint marital property regime can be regarded as a one single VAT taxpayer.

According to the CJEU’s judgment, the answer to both questions is YES!

What the CJEU ruled?

The CJEU ruled that, a seller who engages a professional agent, dividing plots, arrange amenities or change their classification an construction plots, may be regarded as a VAT taxpayer. As a result, the sale (supply) does not constitute ordinary management of private assets and is subject to VAT.

While the CJEU’s standpoint on the taxation of transactions conducted by spouses is not particularly surprising, however its recognition of a marriage as a VAT taxpayer is groundbreaking!

The CJEU’s reasoning refers to the perspective of third parties – since spouses acted jointly in the sale, they did not conducted a transaction as a two separate entities from an external point of view. Another important factor is whether they shared the economic risk of business activities.

Implications for VAT

The judgment overturns the long-standing approach of Polish tax authorities regarding the sale of jointly-owned marital property. Until now, each spouse was considered as a separate VAT taxpayer (reporting based on a 50/50 ownership rule).

This raises a number of questions and doubts, such as:

• should a marriage register jointly for VAT and obtain a tax ID (NIP) prior to a transaction subject to VAT? What would such a registration process look like?
• what about invoices issued and VAT returns filed under the previous practice – will corrections be needed? Would retroactive VAT registration be required, or does the ruling apply prospectively?
• what are the implications for the right to deduct input VAT?

The consequences of this ruling may significantly impact various entities, particularly on the VAT field, such as:

• married couples selling property, especially land, that was initially private property;
• spouses leasing their real estates;
• purchasers of real estates, lessees of apartments, easement beneficiaries. There is a doubt whether purchasers still have the right to deduct input VAT if invoices were issued only by one spouses or by two of them according to “50/50 rule”.

In case you are interested in the above information and its impact on your business, please contact:

or your adviser from MDDP.

This Tax Alert does not provide legal or tax advice. MDDP Michalik Dłuska Dziedzic & Partners spółka doradztwa podatkowego spółka akcyjna is not responsible for the use of the information provided in the Alert without the prior consultation with legal or tax advisers.