Změna přístupu v posuzování stálé provozovny pro účely DPH v Polsku

Change of approach in the assessment of a fixed establishment for VAT purposes in Poland

In response to the case law of the Court of Justice of the EU (CJEU), the Polish tax administration has eased its strict approach to the definition of a fixed establishment for VAT purposes.

Therefore, if you have a fixed establishment for VAT purposes in Poland, we recommend you to review the situation in detail in light of the new rules. At the moment, it should be easier to confirm the absence of a fixed establishment for VAT purposes in Poland. Given that the existence of a fixed establishment in Poland will require the mandatory use of electronic invoicing for all sales and purchases from 2026, you should not wait too long with this check.

The absence of a fixed establishment can bring significant savings (see the mandatory e-invoicing obligation for established entities), but also different VAT treatment for selected transactions (e.g. services).

At the same time, it should be remembered that a fixed establishment for VAT purposes is a completely different concept than a permanent establishment for income tax purposes (the existence of a permanent establishment for income tax does not automatically give rise to a fixed establishment for VAT and vice versa).

Given the potential impact on tax obligations and cash flow, we recommend to review the existence of a fixed establishment in Poland according to the new approach. We will be pleased to facilitate contact with our Polish colleagues.

For any questions or comments, please contact the authors of the article or the EY advisory team you are working with.

Authors:

Martin Novák

Nikola Kratochvílová