A company will be supplying e-services under BtoB and BtoC through a server located in Poland. They will not employ any staff in Poland and they will not use a staff of 3rd party. The servers shipped to Poland will remain the property of the company.
Does the company needs to register to VAT in Poland?
Taxpayers providing electronic services private individuals are generally entitled to use MOSS procedure. It allows to register for VAT, file VAT returns and make payments in one place/country instead of registration and filing in each of the destination countries.
A taxpayer can also take advantage of simplified VAT rules for low annual turnover without the need to register with MOSS if he meets certain conditions. One of them is the threshold of EUR 10 000 to the total value of supplies of telecommunications, broadcasting or electronic services in the current and preceding calendar year.
If the taxpayer sells electronical services to Polish private individuals he can potentially use simplified VAT rules for low turnover or use MOSS. He may decide however not to use the two options. In such case the sale to Polish private individuals will have to be reported in Poland via the Polish VAT returns so the VAT registration in Poland will be necessary.
In case of the transactions B2B for electronic services the place of taxation is considered as per general rule i.e. in the country of establishment of the Client of the services so generally reverse charge can be applied so it will not cause the obligation of registration itself.
As for the delivery of the servers (and spare parts) there is a law provision saying that in case the goods are used temporarily for the purpose of providing services by that taxable person established in the territory of the Member State of departure or transport it shall not be deemed intracommunity acquisition – art.17, p.2g of the Council Directive 2006/112. In case of temporary usage such delivery will not cause the obligation of VAT registration itself.