Is the VAT registration in Poland enough or do we need a fixed establishment as well?Tags: fixed establishment, VAT registration Categories: FAQ, RSS
Is the VAT registration in Poland enough for a Swiss company willing to perform business operations (sales) in Poland or will they need to have permanent establishment in Poland?
The term fixed establishment has been recently defined by VAT law regarding supply of services – Art. 11 of Council Implementing Regulations No 282/2011 of 15 March 2011 laying down implementing measures for Directive 2006/112/EC. Following also the definitions included in OECD Model Treaty this term may be summarized as a place from which the activities of the organization are carried out and which has the permanent presence of both the human and technical resources necessary for making or receiving the supplies. This definition therefore contains the following essential features, all of which must be present:
a. there must be a geographic place of business, possibly premises or a site, although it can, in certain circumstances, be machinery or equipment.
b. the place of business must be fixed, that is, have a certain degree of permanence, and
c. the non-resident’s business must be carried on through this fixed place of business, normally by the personnel of the enterprise.