Provincial Administrative Court in Gliwice: Toll manufacturing activities in Poland do not lead to Fixed Establishment

Summaty

• A German entity contracts with a toll manufacturer in Poland
• The German entoty puts 3 machines free of charge at the disposal of the Polish entity
• German entity does not have a VAT registration in Poland, it has no employees on the ground in Poland
• The German entity is buying raw materials and ships them to the Polish toll manufactirer
• The Polish entity uses the material provided by the German entity in its own processes
• Product is shipped back to Germany
• The German entity sells the product to customers in Europe

Source NSA: I SA/Gl 1051/19 – Wyrok WSA w Gliwicach

Unofficial translation in English

See also Concept of Fixed Establishment remains a huge concern for businesses …… an overview of recent developments (published July 29, 2020)