The Meaning Of "Fixed Establishment" In The VAT Directive

Ruling description

On September 25, 2015, the Supreme Administrative Court issued a judgment (case file no. I FSK 578/15), in which it addressed the notion of "fixed establishment" for the purposes of VAT and the abuse of rights in connection with VAT.

The Supreme Administrative Court ruling was issued in a case involving a Polish taxpayer, which was similar to a case resolved in 2014 by the Court of Justice of the European Union (ECJ) in the C-605/12 judgement. This is one of the first Polish court awards regarding the fixed establishment issued after the ECJ judgment.

In the case at hand, the Polish company signed a contract with a business partner from Cyprus, whereby the Company agreed to perform the whole package of services necessary for an e-commerce service to function (an internet auction service organized by the Cypriot company) targeted at Polish users. The Company submitted that the services provided to the Cypriot counterparty are subject to