Does a German parent company have to issue invoices in the National e-Invoicing System (KSeF) for its Polish subsidiary (sp. z o.o.)?

Where a foreign business has a subsidiary in Poland, it usually does not result in the foreign business having a fixed establishment for VAT purposes in Poland. Therefore, the foreign business is not required to issue invoices via the National e-Invoicing System (KSeF). However, in certain specific circumstances, a Polish subsidiary may constitute a fixed establishment of the foreign business. This may occur where the Polish company provides services only to the foreign business, and the Polish company’s employees and technical facilities are directly controlled by the foreign business (i.e., the foreign business decides how the technical facilities owned by the Polish company are used, as well as the working hours and the type of work performed by employees employed by the Polish company). In such cases, a detailed analysis is required to assess whether the Polish company constitutes a fixed establishment of the foreign business.