VAT and PIT obligations of a natural person related to individual activities

The natural person has been engaged in rural tourism activities for almost 10 years and has used the certain real and movable property for the acquisition of which EU support has been received. The natural person was a VAT payer, therefore, the provided tourism services were subject to VAT, the generated profit was subject to PIT, state social Insurance, and compulsory health insurance contributions.

After deciding to sell the business and terminate the individual activity, the natural person had a number of questions – whether the business/property should be sold with VAT or without VAT, whether part of the property purchase VAT should be restored (refunded), when it is better to terminate the individual activity, whether profits from the sale of assets should be taxed as profits from individual activities or as profits from the sale of personal assets, etc.

After delving into the individual situation of a natural person and analyzing the data of his / her rural tourism activity for the whole period, we answered all the questions, advised when it is optimal from a tax point of view to terminate individual activity, and calculated all tax liabilities related to business sales and termination.

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