Update on Fixed Establishment (FE)

In a continuation of the FE issue in Poland published in the IVA newsletter in March 2020, please find the new facts below.

In June 2020, a foreign company with a Polish VAT registration has received a negative tax ruling regarding FE for the manufacturing services which have been commissioned on entrusted materials to the Polish contractor. The tax authorities decided that the company has a fixed establishment in Poland, arguing that the company has control over the contractor’s personnel and technical facilities.

Source: IVA

Note from the editors: this decision seems to be the same approach as the argumentation in recent case law, see HERE.

See also our post HERE about the recent developments with regard to fixed establishments



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