Tag: fixed establishment
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.
Answering directly – Yes, VAT needs to be submitted in Poland through tax agent when the company has its fixed establishment outside EU. INTERTAX also sends data to the tax office electronically however we are using a dedicated commercial software to be sure that all tax requirements have been met. There is a possibility to send the VAT returns online via electronic forms provided by the tax office, however this forms are very poor and could lead to incorrect VAT return calculation.
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.
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? (more…)