11 September 2018 Polish Court applies Skandia ruling to transactions between Polish branches and HQs The Polish Administrative Court issued the first judgment (case no. III SA/WA 3486/17) on August 24, confirming the possibility to recover input value added tax (VAT) by Polish branches, in cases in which such branches provide services for the VAT group's headquarters (HQs). The Polish court ruling follows the Court of Justice of the European Union (CJEU) judgment in the Skandia case, which held that services provided by the main establishment of a company (located in a third country) to a branch of a company (located in a Member State) are taxable transactions if the branch is a member of a VAT group (a group of persons that can be considered as a single taxable person within value added tax). Thus, the CJEU confirmed that the main establishment of a company and its branch may be treated as separate VAT taxpayers. Document ID: 2018-1787 |
