Question:
The Polish- established company, registered to PL VAT as well as VAT UE supplies the IT services to EU and non-EU companies. Where is the place of the supply this type of the services?
Analysis:
Generally, based on the art. 28b PL VAT Act, and art. 44 EU Directive 2006/112/EC, the place of supply of services to a taxable person acting as such shall be the place where that person has established his business, with certain exceptions.
Given the foregoing, in case of the provision the IT services to EU or non- EU business clients, the place of the taxation is in the place where the buyer is established.
Additionally, the IT services are not defined as exception from the general rules, so as it was mentioned above, the place of the taxation is the place where buyer is established.
The seller is obligated to issue an invoice with NP instead of VAT rate, i.e. an invoice that does not contain the tax rate and the tax amount on the sum of the net sales value. The buyer is obligated to apply reverse charge mechanism and settle the input and output VAT.
Despite of the fact that the seller is not obligated to settle the VAT amount, the supply of the services to EU and non- EU taxable person should be declared in his VAT reports in PL.
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