The concept of a fixed establishment for VAT purposes is an important one in determining whether a business is liable to register for VAT in a particular country. In Poland, the courts have considered various factors when determining whether a fixed establishment exists. Here are some of the arguments that have been made:
- Physical presence: One of the most important factors in determining the existence of a fixed establishment is physical presence. Courts have looked at whether a business has a permanent establishment in Poland, such as an office or a warehouse, and whether it has staff or equipment in the country.
- Economic activity: Another important factor is whether the business is engaged in economic activity in Poland. This could include selling goods or services in the country, or having contracts with Polish customers.
- Autonomy: Courts have also considered whether the business has a degree of autonomy in its operations in Poland. This could include having the authority to negotiate and sign contracts on behalf of the business, or having the power to make decisions about the use of assets in the country.
- Duration: The length of time that the business has been operating in Poland is also relevant. Courts have considered whether the business has been operating in the country for a significant period of time, or whether it has a temporary presence.
- Importance: The importance of the activities carried out in Poland is also relevant. Courts have considered whether the business’s operations in Poland are essential to its overall business activity, or whether they are minor or incidental.
These are just some of the arguments that have been made in Polish courts when determining the existence of a fixed establishment for VAT purposes. Ultimately, each case will be decided on its individual facts and circumstances, and the courts will weigh up all of the relevant factors to reach a decision.
