Who informs the tax office about the construction of a house?

Table of contents

• How does the tax office know about building a house?
• What are the consequences of not reporting the construction of a house to the tax office?
• What documents must be submitted to the tax office regarding the construction of a house?
• How to properly prepare for reporting the construction of a house to the tax office?

There is no denying that building a house is a complicated process that requires not only financial commitment, but also full compliance with tax regulations. One of the key steps that cannot be neglected is to inform the tax office about the planned or currently implemented investment. Why is it so important and who informs the tax office about the construction of a house? You will find the answers to all these questions in the article below.

How does the tax office know about building a house?

The main entity obliged to report the construction of a house to the tax office is the owner of the property. It can be both a natural and legal person with full ownership rights to the plot on which the house is planned. The obligation of the property owner is primarily to inform the tax office about the commencement of construction works, as well as to provide the required documents, including the appropriate application. This application should include all detailed information about the planned construction, m.in. type of building, area or location.

And if you are wondering whether the construction contractor is obliged to inform the tax office about the construction of a house, the answer is yes. If this is not reported, the taxpayer may face serious consequences.

What are the consequences of not reporting the construction of a house to the tax office?

Every property owner should be aware of the fact that failure to report the construction of a house or delay in providing the required information/documents to the tax office can lead to serious legal and financial consequences. The most common sanctions include financial penalties, calculated from a specific date of commencement of construction or from the amount of unreported income. What is more, if the owner does not report the fact of commencement of construction to the tax office, he may then be fined and, in some cases, even imprisoned.

What documents must be submitted to the tax office regarding the construction of a house?

When reporting the construction of a house to the tax office, the owner is obliged to submit the appropriate documents that are necessary for the tax authorities. Presenting a complete set of documents is crucial for the correct recording of the construction project and ensuring compliance with applicable regulations. Therefore, below is a list of documents that are usually required in the process of reporting the construction of a house to the tax office.

• A building permit for a house;
• Local spatial development plan (MPZP);
• Construction project;
• Statement of the site manager;
• Construction diary;
• Contracts with contractors and suppliers;
• Invoices and receipts to prove costs;
• Notice of commencement of construction.

How to properly prepare for reporting the construction of a house to the tax office?

Now that you know who informs the tax office about the construction of a house, as well as what the penalties for failure to comply with this obligation are, it is still worth finding out how to properly prepare for such a notification. Remember, filing correctly not only ensures compliance, but also minimizes the risk of possible tax complications.

Here are a few steps that will help you properly prepare to report the construction of a house to the tax office:

• Preparation of all necessary documents – mainly the documents mentioned above, i.e. m.in. building permit or contracts with contractors.
• Preparation of an application for the construction of a house – which should include all the key information about the construction.
• Preparation of financial documents – it is important to precisely determine all costs related to the construction of a house. For this purpose, you need to collect bills, invoices and other documents confirming the expenses incurred.
• Obtaining a building permit – if the construction of a house requires obtaining a building permit, you should make sure that this document is approved by the appropriate authorities. A copy of this permit should also be attached to the set of documents submitted to the tax office.

See also: where to start building a house, so you won’t make any mistakes right from the start!