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Business exclusively on the Polish territory – sorting plant

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Taxpayers who want to do business exclusively on the Polish territory, must take into account that their sorting plant was not considered to be a representative office or a permanent establishment within the meaning of OECD convention. This may result in the need to register with relevant authorities of the State in which the sorting plant is located.

It can be determined by the tax authorities of the given country that the taxpayer conducts business activity on the area of that country, which may entail the necessity of the value added tax payment (and in addition also income tax due) at the rates applicable in the Member State. Therefore, a sorting plant must only serve the physical handling of products intended to be delivered to the final consumer in the intra-Community supply of goods.