Tax authorities have a very broad understanding of fixed establishments – an approach that is unfavourable for taxpayers. However, administrative courts usually do not accept it.
The fixed establishment, or FE, is an important issue related to VAT. Even though it formally determines what the tax situation of foreign companies looks like, and how they should account for transactions carried out in Poland, it is also of significance for Polish companies. This is because if foreign service recipients have their FEs in Poland, this may require domestic providers to apply tax on their services.
Read the whole article by tax consultant Krzysztof Dżugaj on Rzeczpospolita’s website at https://kancelarierp.pl/stale-miejsce-prowadzenia-dzialalnosci-gospodarczej