Tag: storage services
The place of supply of the complex storage services is the fixed establishment of the client. The storage operations and storage of goods cannot be classified as the services connected with the immovable property, unless the recipient has the right to administer the warehouse space.
The above was ruled by the Provincial Administrative Court in Poznań in its judgment of September 4th 2013 (I SA / Po 643/13).
In general the place of taxation of the service shall be determined on basis of the place where the customer is established or has a fixed establishment. There are numerous exceptions from this rule though. Inter alia the services connected with the immovable property which are taxed at the location of the immovable property. How to determine the place of VAT taxation for storage services? (more…)
When the storage of goods is a main service, the whole comprehensive storage services (which includes, amongst others: receiving the given goods, packing, delivering, loading and unloading) should be taxed in the country where the warehouse is located. But under the condition: the customer should be granted the right to use the whole or part of the warehouse.
The EU Court of Justice will judge where should be taxed comprehensive storage services – VAT on storage services.
The Supreme Administrative Court decided to address the preliminary question in the case concerning the VAT Act. Polish Court of Cassation inquired about place of taxation of storage services. The point is, how to interpret art. 44 and 47 of 112th Directive.
The NSA concerns relate to comprehensive services of the storage of products including many activities i.e. acceptance of goods to the warehouse, placing them on appropriate shelves, storage, issuance, loading and unloading, and in some cases, re-packaging materials supplied in bulk packages to the individual sets. The EU Court of Justice will have to answer whether those are services connected with immovable property, which are taxed at the site of the warehouse. Or it should be assumed that these services are taxed at the place where the recipient of services has established his business (or has its fixed establishment, or fixed residence).