VAT in Poland and Europe

The situation

A German company had incurred Polish VAT on its purchases and applied to recover it through the refund procedure for businesses established abroad (VAT-REF). The Polish tax authorities issued a decision refusing the refund.

Why the refund was refused

On review, the company had in fact been carrying out transactions that were taxable in Poland. It was therefore never entitled to recover the VAT through the cross-border refund route — it should have registered for VAT in Poland and settled the tax through Polish returns. Pressing on with the refund proceedings would not have produced a refund.

What getsix® did

1. Re-examined the transactions and confirmed the correct VAT treatment and place of taxation.
2. Registered the company for VAT in Poland, with effect backdated to when the obligation first arose.
3. Prepared and filed the outstanding Polish VAT returns for the earlier periods.
4. Submitted a voluntary disclosure (czynny żal) so the late filings would not trigger fiscal-penal sanctions.
5. Advised the client to discontinue the unpromising refund proceedings in favour of the correct settlement route.

The situation

A foreign logistics operator uses warehousing, equipment and staff resources in Poland to serve customers across the EU. That footprint raises the question of whether it has a fixed establishment (FE) for VAT purposes in Poland.

Why it matters

If an FE exists, both the place of supply and the way VAT is settled change. An incorrect assessment can lead to VAT arrears, interest and penalties if the authorities reassess the position — often years later.

What getsix® does

1. Maps the operating structure — resources, personnel, the degree of control and the services actually provided from Poland.
2. Assesses that structure against the FE criteria in the VAT Directive and the case law of the Court of Justice of the EU (CJEU).
3. Determines the correct place of supply and settlement model, and — where certainty is worth having — applies for an individual tax ruling.
4. Aligns registration, invoicing and reporting with the conclusion.

The situation

Goods move through a chain of three or more parties across EU borders, with a Polish element in the chain. It is unclear which supply is the intra-Community one and where each leg of the transaction should be taxed.

Why it matters

Allocating the “moving” supply to the wrong leg can create an unexpected obligation to register and account for VAT in another member state — and expose the parties to double taxation on the same goods.

What getsix® does

1. Analyses the flow of goods, the invoicing and who is responsible for transport at each step of the chain.
2. Identifies the intra-Community supply and the place of taxation for every leg.
3. Issues a VAT opinion and, where relevant, confirms whether the triangulation simplification can apply.