What Is the Business Activity of an ASI?

The sole purpose of an Alternative Investment Company (ASI – Alternatywna Spółka Inwestycyjna), subject to exceptions defined by law, is to collect assets from multiple investors and invest them on their behalf according to a defined investment policy. ASIs may acquire various types of assets, including traditional ones such as shares in public or private companies, equity interests in limited liability companies, and other assets such as precious metals, real estate, intellectual property rights, and more.

Who Is a VAT Taxpayer?

Under the Polish Value Added Tax Act (Ustawa o podatku od towarów i usług), VAT taxpayers include legal entities, organizational units without legal personality, and natural persons conducting independent business activity—regardless of the purpose or outcome of that activity. VAT applies to the paid supply of goods and services within Poland. Given the broad interpretation of “supply of goods” and “provision of services,” any sale of the aforementioned assets may be considered a taxable transaction.

Does ASI Activity Fall Under VAT?

This raises the question: do the investment activities of an ASI constitute taxable supplies of goods or services subject to VAT?

VAT Exemptions

The VAT Act provides two types of exemptions:

  • Subject-matter exemptions
  • Entity-based exemptions

Some exemptions are both subject- and entity-based. If an ASI exceeds the threshold for entity-based exemption—i.e., annual taxable sales of PLN 200,000—it may be required to register as an active VAT taxpayer.

However, due to the nature of ASI investment activities, most transactions will fall under subject-matter exemptions. For example, services involving financial instruments as defined in the Act on Trading in Financial Instruments of July 29, 2005—excluding custody and management—are exempt. This includes brokerage services and transactions involving shares in companies or other legal entities. As a result, the sale of shares, equity interests, investment certificates, and other financial instruments will generally benefit from VAT exemption.

What If an ASI Invests in Precious Metals?

Subject-matter VAT exemptions do not apply to unprocessed gold (e.g., gold granules or jewelry), investment-grade silver, or other precious metals. These are subject to the standard 23% VAT rate. Therefore, if an ASI’s investment strategy includes acquiring physical silver (not derivatives or contracts), it must register for VAT as an active taxpayer—either upon exceeding the threshold or from the first taxable sale.

Summary

An Alternative Investment Company is generally not subject to VAT on transactions involving financial instruments such as shares or equity interests, due to subject-matter exemptions. However, if the ASI engages in transactions involving non-exempt assets—such as physical precious metals—it may be required to register for VAT and apply the standard rate. Understanding the scope of exemptions and registration thresholds is essential for ASIs to remain compliant with Polish tax law.

Need support with VAT compliance for your ASI? Contact Destrier for expert legal and tax advisory.