VATupdate

Share this post on

Provincial Administrative Court in Gliwice: A German entity involved in the implementation of projects related to renewable energy sources leads to a Fixed Establishment

Facts

The party stated that it is a company under German law, has its registered office in Germany and is registered as a VAT payer there. There he also runs a business in the field of implementing projects related to renewable energy sources, such as, for example, wind and solar power plants. He is not a registered VAT payer in Poland. Activities in Germany include various stages of the implementation of projects related to renewable energy sources, ranging from the search for a location for investment, through the design of the installation, implementation of the installation, connection of the installation to the power grid, installation service, and ending with the management of the existing installation. Implementation of projects in Germany – depending on a specific project – may include one, several or all of the above-mentioned activities. In Germany, the party has an office with the seat of the management board, as well as the departments: […], […], […], […], […]. It employs approx. […] people in Germany.

The applicant plans to conclude an agreement and start cooperation with a Polish limited liability company with its registered office in Poland and being an active VAT taxpayer. The applicant owns 100% of the shares in the Polish company. The Polish company referred to above, under the contract with the applicant and in close cooperation with him, will provide services to him, in particular in the field of searching for sites in Poland suitable for the implementation of projects related to renewable energy sources, and preparatory activities for the implementation of this type of projects, technical planning of projects, and technical management of projects. All rights and obligations related to the indicated activities performed by the Polish company will be transferred to the applicant.

The applicant, based on the services purchased from the Polish company, intends to provide services of searching for investors interested in the implementation of projects related to renewable energy sources in Poland. The investors will be VAT taxpayers with their registered office in Poland or a permanent place of business in Poland, who will be registered or obliged to register as VAT taxpayers – EU. The company plans to implement the following cooperation models:

1.the applicant will sell the investor all rights related to the project (e.g. obtained permits and approvals, rights to land, technical documentation enabling the project to be implemented in a given area) as part of the sale of assets, and then the investor will independently implement the project – project implementation will be took place without the participation of the applicant and without the participation of the Polish company;

2.The applicant will sell the investor all rights related to the project (e.g. obtained permits and approvals, rights to land, technical documentation enabling the project to be implemented in a given area) as part of the sale of assets, and then the investor will independently implement this project – project implementation will take place without the participation of the applicant, however, the investor will use the advisory services of a Polish company on the basis of a separate agreement;

3.The investor will commission the implementation of the project to a Polish company, and the applicant will sell to that Polish company or another company with its registered office in Poland all rights related to the project (e.g. obtained permits and approvals, rights to land, technical documentation enabling the project to be implemented in a given area ), and then a Polish company or another company based in Poland will implement the project on its own or with the participation of subcontractors, which will then be sold to the investor.

Source

 

Sponsors:

VAT news

Advertisements:

  • AXWAY - VATupdate Banner