Supplies between a VAT group company and its branch

Lidia Adamek-Baczyńska, Natalia Dekert
Puls Biznesu

Legislation introducing VAT Groups, to become effective as of the start of 2023, generates plenty of concerns among businesses. One of the concerns is how to properly recognise for VAT purposes various supplies between a VAT group company and its branch that does not belong to the VAT group. The law is silent on this. The article presents the approach of Polish tax authorities based on their recent tax rulings where it is held that, for VAT purposes, services supplied between a branch and its parent company which is a member of a VAT group need to be recognised as an importation of services or a supply of services abroad, as the case may be.