Proportional VAT Deduction by Polish Branch of Foreign Company

• The text discusses a new interpretation regarding proportional VAT deduction by the Polish branch of a foreign company.
• The interpretation is considered partially correct and partially incorrect.
• The correct aspects include the consideration of exclusions from the tax law and the incorrect aspects include the calculation of proportions, deduction of tax, and application of exchange rates.
• The request for the interpretation was submitted on July 14, 2023, and additional information was provided on October 4, 2023.
• The company in question is a member of a VAT group in Poland and has established a branch in Poland.
• The branch supports the company’s processes and activities in other countries, including IT support, financial support, administrative support, and accounting support.
• The branch operates in Poland using technical infrastructure and personnel resources.
• The branch currently employs staff in Poland and utilizes rented office buildings and furniture for its operations.

Source: sip.lex.pl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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