An exclusivity agreement, provision of own human and technical facilities, ancillary services or a capital link are not enough to conclude that the taxpayer has a permanent place of business in the country of its contractor and it is there that VAT should be settled. In the case of Cabot Plastics Belgium SA v. the Belgian State (C-232/22), the Court of Justice of the European Union provided many useful tips on how to interpret the concept of a fixed establishment on the basis of the so-called toll manufactoring model. These guidelines can also be used by Polish entrepreneurs settling accounts with foreign contractors. The ECJ’s ruling may become a helpful tool in assessing more complex factual situations.
Source: www.parp.gov.pl
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