A branch in Poland – the right to deduct VAT on purchased in Poland goods and services

A branch in Poland of a foreign company has the right to deduct VAT on purchased in Poland goods and services

NSA (Supreme Administrative Court) has ruled once again ( February 24th 2014 I FSK 353/13) the right for the foreign company permanent establishment in Poland to deduct the VAT from the purchased in Poland goods and services connected with the services related to the activities performed for the main company (headquarters).

 

The condition of that deduction is that the foreign company to show a relationship between purchases carried out by a branch in Poland and its activities abroad. It is important, however, that the foreign company conducts taxable activities.

It is worth noting that this is Supreme Administrative Court another judgment that confirms the right of VAT deduction by the branch (in the previous judgment from February 26th 2013 I FSK 493/12)