VAT on a Flat from a Developer in Poland 2026: 8% or 23%
Author: Tacjana MasiukiewiczCosts and taxes~14 min read
You buy a flat from a developer with VAT included in the price. The rate is 8% if the unit has up to 150 m² of usable floor area (a single-family house — up to 300 m²). Above that, 23% is charged only on the part of the price corresponding to the excess. Below we show how to calculate this on an example of 100 m² and 170 m², and on a real apartment from our offer. We also explain when a parking space and a storage room carry 8%, and when 23%.
Key facts
- The reduced VAT rate on flats and houses from a developer is 8%. It follows from art. 41(2) and (12)–(12c) in conjunction with art. 146ef of the VAT act.
- The limits are 150 m² for a residential unit and 300 m² for a single-family house. Above the limit, 23% applies only to the excess area, not the whole price.
- A parking space and a storage room sold together with the flat as part of it, or as a right to the exclusive use of common property, usually carry 8%. A share in a garage that is a separate commercial unit with its own land and mortgage register carries 23%.
- The developer must quote prices including VAT (art. 19a of the developer act), so the amount on the price list is what you pay.
- A private individual cannot reclaim VAT on buying a flat. The right to deduct belongs only to a VAT payer, and only for taxable activities.
What VAT applies to a flat from a developer — 8% or 23%?
The VAT act calls this "construction covered by the social housing programme". Despite the name, it means ordinary flats and houses from the primary market, not social housing. Art. 41(12a) includes in this category residential buildings or parts of them, excluding commercial units. Residential buildings, under art. 2(12), are permanent-residence residential buildings from section 11 of the Polish Classification of Construction Objects.
Art. 41(2) still lists 7%, but the transitional provision in art. 146ef(1)(2) raises that rate to 8%. It applies from 1 January 2024 until the end of the year in which defence spending in the budget falls to 3% of GDP or below. The finance minister has to announce the end of that period in the Monitor Polski. As of September 2026, developers apply 8% and 23%.
The value of the land isn't deducted from the price. Art. 29a(8) states that when a building or part of it is supplied, the land isn't separated out from the tax base, so it's covered by the same rate as the flat. That's why you don't pay PCC when buying from a developer. We describe the rules and the "sixth unit" exception in the article PCC tax when buying a flat.
8% VAT up to 150 m² — how VAT is calculated for a larger flat
Under art. 41(12b), a residential unit above 150 m² and a single-family house above 300 m² don't fit entirely into the preference. However, paragraph 12c states that the reduced rate applies to the part of the tax base corresponding to the share of the "qualifying" area in the total usable area. For a flat of 170 m², that's 150/170, i.e. 88,2% of the net price at 8% VAT. The remaining 20/170, i.e. 11,8%, carries 23% VAT.
Below is a comparison of two flats in the same development with the same net price of 15 000 zł/m²:
| Item | 100 m² flat | 170 m² flat |
|---|---|---|
| Net price (15 000 zł/m²) | 1 500 000 zł | 2 550 000 zł |
| Part with 8% VAT | 100 m² → 1 500 000 zł net | 150 m² → 2 250 000 zł net |
| Part with 23% VAT | — | 20 m² → 300 000 zł net |
| 8% VAT | 120 000 zł | 180 000 zł |
| 23% VAT | — | 69 000 zł |
| Gross price | 1 620 000 zł | 2 799 000 zł |
| Gross price per m² | 16 200 zł | 16 464,71 zł |
| Effective VAT rate (on net price) | 8% | 9,76% |
| Extra charge for the excess above 150 m², vs. the 8% rate | — | 45 000 zł |
The takeaway: for a large flat, 23% doesn't apply to the whole price. Every metre above the limit raises the net price of that metre by an extra 15 percentage points. In the example, that's 2 250 zł on each of the 20 "excess" metres.
An example from our offer: a 173,71 m² apartment in Wilanów
According to TM Invest's offer (as of 27.09.2026), we have 4 351 available flats and houses for sale in Warsaw and Wrocław. Only 26 of them have over 150 m² (3 are houses). Most large units are in Wilanów, where the median area of available flats is 138,1 m². That's just under the limit: for instance, apartments of about 138 m² in Royal Garden W1 carry 8% VAT in full.
Take unit 1A in the VISLA development in Wilanów. It has 173,71 m², and the price list shows 2 770 000 zł (15 946 zł/m²). That's the gross price, so we work backwards. We assume the developer priced every metre at the same net price.
- Share of the area with 8% VAT: 150 / 173,71 = 86,35%. Share with 23% VAT: 13,65%.
- Net price: 2 770 000 zł / (0,8635 × 1,08 + 0,1365 × 1,23) ≈ 2 517 098 zł.
- 8% VAT on 2 173 534 zł net = 173 883 zł.
- 23% VAT on 343 563 zł net = 79 020 zł.
- Total VAT ≈ 252 902 zł, i.e. about 9,1% of the gross price. If the whole unit carried 8%, VAT at the same gross price would come to 205 185 zł, i.e. about 47,7k zł less.
The real net/VAT split will show on the invoice from the developer and may differ slightly from our assumption. For a private buyer, what matters is the gross amount.
VAT on a house from a developer — the 300 m² limit
For a single-family residential building, the limit is twice as high, at 300 m² of usable area. All 87 houses available in our offer (from 58 to 175 m²) fit comfortably within it, so the whole price carries 8% VAT. An example from our offer: house D2 in the Zagony 39 development in Wrocław's Fabryczna district has 175,27 m² and costs 1 990 000 zł. As a residential unit it would exceed the 150 m² threshold, but as a house it's well under the limit. The 8% VAT included in the price is about 147 407 zł.
Watch out for semi-detached and terraced houses. What matters is what you're actually buying. If the developer sells the whole single-family building (with the plot), the 300 m² limit applies. If units have been separated out within the building and you're buying a "residential unit", the 150 m² limit from art. 41(12b)(2) applies. What's being sold always follows from the information prospectus and the developer agreement.
Considering a large flat or a house and want to know what you'll pay in total, including a parking space and a storage room? We'll help you choose and buy a flat from a developer and work out the total cost. For the buyer we usually charge no commission, because the developer normally pays our fee.
VAT on an underground garage parking space and a storage room
What decides here is the legal form, not whether the space is "under the building". Tax authorities and administrative courts, e.g. the Supreme Administrative Court (NSA) in rulings of 11 May 2010 (I FSK 724/09) and 6 December 2012 (I FSK 156/12), settle this on a single principle. If the parking space has no separate land and mortgage register and is inseparably linked to the flat, the sale is a single supply at the rate that applies to the flat. If it has its own register, these are two separate supplies.
| What you're buying | Legal form | VAT rate |
|---|---|---|
| A space in the garage together with the flat | The right to exclusive use of part of the common property, no separate register, one agreement and one price | 8% (as the flat) |
| A storage room together with the flat | A room ancillary to the unit (art. 2(4) of the act on the ownership of premises) or the right to exclusive use of common property | 8% (as the flat) |
| A space in a multi-bay garage | A share in the co-ownership of a garage that is a separate commercial unit with its own register | 23% |
| A parking space or storage room bought separately | A separate agreement, a separate item of trade | usually 23% |
| A ground-level space on another plot | A paid land easement established separately | 23% (a separate supply) |
| A commercial unit | Excluded from residential construction (art. 41(12a)) | 23% |
In its November 2024 ruling, KIS confirmed the 8% rate for a flat sold together with the right to exclusive use of a parking space or storage room. The conditions were: one agreement and one notarial deed, no separate ownership or separate registers for the spaces and storage rooms, no possibility of trading those rights separately, and one combined price. The November 2025 ruling concerned an external car park on a separate plot. The right to the space was to arise through a paid land easement, so the authority treated it as a separate supply that doesn't benefit from the flat's rate.
What does this cost in practice? For a space priced at 60 000 zł gross, VAT is 4 444 zł at the 8% rate and 11 220 zł at 23%. In money terms that's not much, but it's worth checking in the draft agreement how the parking space is legally structured. That affects not only VAT, but also whether you'll be able to sell it separately later. A review of the developer agreement can help with that.
Does the developer's price list include VAT?
Yes. Since 11 July 2025, art. 19a of the developer act requires the developer to state on its own website the price per m² and the price of the whole unit or house. It must also state the prices of ancillary rooms and rights necessary to use the unit, e.g. a parking space, if these aren't included in the price, along with any other monetary payments. All these amounts must be stated "including value added tax". If the price at signing differs from the published one, you can demand the agreement be concluded at whichever price is more favourable to you (art. 19a(6)).
In the developer agreement and on invoices, the price is usually split into net and VAT. For units above 150 m², you'll see two lines on the invoice: at 8% and at 23%. We write more about what else should be in the agreement in the article Developer Agreement 2026.
Can you reclaim VAT on a flat?
Not a private individual. Art. 86(1) of the VAT act gives the right to reduce output tax by input tax only to a VAT payer, and only to the extent the goods serve taxable activities. For a buyer purchasing for their own needs, VAT is simply part of the price.
Buying through a company doesn't always let you reclaim VAT. Letting for residential purposes is VAT-exempt (art. 43(1)(36)), and VAT linked to exempt activities isn't deductible. A deduction is possible, among other cases, when the unit serves taxable activities, e.g. short-term letting subject to VAT. Such plans are worth discussing with a tax adviser before you buy. We describe how a private individual settles rental income in the article Rental Income Tax in Poland 2026.
Read also:
Frequently asked questions
What VAT applies to a 150 m² flat from a developer?
A flat with exactly 150 m² of usable area carries 8% VAT on the whole price. The limit in art. 41(12b) covers units whose area "exceeds" 150 m², so 23% only appears once there's an excess, and even then only proportionally to it.
Is the whole VAT on a 170 m² flat 23%?
No. 8% applies to the part of the price corresponding to 150 m², and 23% only to the part corresponding to the 20 m² excess. At a net price of 15 000 zł/m², the extra charge compared with the 8% rate is 45 000 zł, and the effective VAT rate is about 9,8%.
What VAT applies to a parking space in an underground garage?
If you buy it together with the flat as the right to exclusive use of common property in the building (with no separate register), 8% usually applies. If you buy a share in a garage that is a separate commercial unit with its own register, or buy the space separately, the rate is 23%.
What VAT applies to a storage room?
A storage room sold together with the flat, as an ancillary room or as the right to exclusive use of common property, carries 8% VAT, just like the flat. A storage room bought later or separately is a separate item of sale and usually carries 23%.
Can the developer add VAT on top of the price list price?
It shouldn't. Art. 19a of the developer act requires prices to be quoted including VAT, and if there's a discrepancy between the published price and the price in the agreement, you can demand whichever price is more favourable to you. A separate issue is a possible change in the VAT rate before the transfer-of-ownership agreement is concluded. Check what the developer agreement provides for that case.
Do you pay both VAT and PCC when buying a flat from a developer?
You pay VAT included in the price, and as a rule no PCC. The exception is the sixth and any further unit in the same building bought by the same person. We've gathered the other purchase costs, i.e. the notary fee and court fees, in the guide Costs of buying a flat from a developer and in the article Notary fees 2026.
Summary
VAT on a flat from a developer is, in the vast majority of cases, 8% included in the price list price. A higher rate appears in three situations: on the excess above 150 m² (for houses, above 300 m²), strictly in proportion to that excess; on a parking space or storage room bought as a separate unit or under a separate agreement; and on a commercial unit. In our offer, fewer than 1% of available units exceed the 150 m² limit, mainly apartments in the VISLA development in Wilanów and single units in Wrocław (including in Krzyki). For the 173,71 m² apartment, the excess means about 47,7k zł more VAT than at the 8% rate.
Looking for a large flat or a house and want to compare the real costs of several developments? We'll find you a flat from a developer within your budget. On the market since 2016, and for the buyer we usually charge no commission, because the developer normally pays our fee. You can also browse offers yourself in the catalogue of new homes in Warsaw.
Legal status as of September 2026. The calculations are illustrative and are not tax advice. The VAT rate for parking spaces and storage rooms depends on the legal structure in a given development — if in doubt, the developer or the buyer can apply for an individual ruling.
Sources
- Act on tax on goods and services (VAT act) — consolidated text Dz.U. 2025 item 775 (art. 2(12), art. 29a(8), art. 41(2) and (12)–(12c), art. 43(1)(36), art. 86(1), art. 146ef).
- Act on the protection of the rights of buyers of a residential unit or single-family house and the Developer Guarantee Fund — consolidated text Dz.U. 2026 item 880 (art. 19a).
- Act on the ownership of premises — consolidated text Dz.U. 2026 item 232 (art. 2(4)).
- Individual rulings of the Director of the National Revenue Information Service (Eureka) — of 29.11.2024, ref. 0112-KDIL1-1.4012.637.2024.2.EK, and of 27.11.2025, ref. 0114-KDIP1-1.4012.748.2025.2.AKA.
- Central Database of Administrative Court Rulings — NSA rulings of 11.05.2010, I FSK 724/09, and 6.12.2012, I FSK 156/12.
- Flat prices: TM Invest's catalogue of new homes, as of 27.09.2026.
