Ruling: Activities between a foreign company and its Polish branch and vice versa are outside scope op VAT

This position was taken by the director of the National Tax Information in the individual ruling of July 16, 2021 (0114-KDIP1-2.4012.190.2021.2.RD).

Facts

The branch is part of a parent company (joint stock company) based in Ireland. The branch carries out economic activity only within the scope of the activity of the foreign entrepreneur (parent entity), which includes the provision of life insurance services. The headquarters, together with some other group entities, is a member of the Irish VAT group. The Polish branch does not belong to the VAT group. In the course of its operations, the Head Office acquires certain benefits related to ICT systems that are used by the branch, and their costs are allocated to the activities of this branch. In the opinion of the Company, the benefits purchased by the Head Office, the costs of which are allocated to the activities of the branch, as well as benefits, …

Source

• Wolters Kluwer
• Archiwum

See also

Taxable person, VAT Grouping, Transactions between Head Office and Branch

• Focus on ”VAT Grouping” (Art. 11)
  • Focus on Supplies of services between Head Office and its Branch, whereby one of the parties is part of a VAT Group

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