Our company owns the construction equipment in Poland. We are going to sell them to a Polish buyer. We do not have a seat in Poland and we are not a registered VAT payer in Poland. Do we need to charge VAT in this sale?Tags: fixed establishment, reverse charge Categories: FAQ, RSS
Since your company does not have a fixed establishment in Poland or a seat in Poland the company responsible for charging VAT will be the Polish VAT payer – the buyer of the equipment. Your company as the seller of the equipment does not have obligation to follow with VAT registration in Poland and charge VAT for this transaction in Poland.
The transaction described will fall under the reverse charge mechanism in Poland.