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Poland: Permanent establishment; non-compete compensation not subject to VAT; 0% VAT on intra-community supplies (Supreme Administrative Court decisions)

A report that includes summaries of recent decisions of the Supreme Administrative Court.

September 3, 2024

The KPMG member firm in Poland prepared a report that includes summaries of the following decisions of the Supreme Administrative Court.

  • The court on August 27, 2024, held (case file I FSK 1679/20) that a foreign company that was not contractually entitled to manage or exercise control over logistics personnel activities provided by a Polish company (i.e., warehouse management), and had no authority to own or dispose of the technical infrastructure necessary and used for this purpose, did not have a permanent establishment in Poland.
  • The court on August 26, 2024, held (case file FSK 1783/20) that compensation paid to former management board members under a non-compete arrangement was not subject to value added tax (VAT) because the non-compete compensation was comparable to a severance payment, which would also not be subject to VAT.
  • The court on August 27, 2024, held (case file I FSK 1662/20) that to apply the preferential 0% VAT rate to intra-community supplies of goods, a company must first verify whether the person serving as the contractor’s representative actually acts on its behalf.

Read a September 2024 report prepared by the KPMG member firm in Poland

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