We are going to trade in Poland. Are we going to have a fixed establishment in Poland?

Currently the definition of fixed establishment defined in the provisions of Article 11 of Council Implementing Regulation (EU) No. 282/2011 describes “fixed establishment” for VAT purposes as any establishment, other than the place of establishment of a business, characterized by a sufficient degree of permanence and a suitable structure in terms of human and technical resources to enable it to receive and use the services supplied to it for the needs of the fixed establishment.

 
The provider of the services shall examine the nature and use of the service provided. The provider of the services should establish if services are provided for the entity having a fixed establishment in Poland by:

 

  • analyzing the type and use of the service provided,
  • analysis if the agreement, the order form, and VAT number of the recipient of the services are indicating the fixed establishment as a place of service reception,
  • establishing whether the fixed establishment is the entity paying for the given service.

 

It should be noted that due to the problematic nature of the conditions determining the fixed establishment the situation should be analyzed in every actual case, also taking into consideration the judgments of EU Court of Justice.