In order to deduct VAT, the taxpayer must possess and have in Poland taxpayers, and registers evidencing both these purchases and taxable operations. The contents of a Polish VAT invoice, and the terms and conditions of issue, are strictly defined in the Ministry of Finance Ordinance on the Implementation of the Regulations of the Act on the Tax on Goods and Services and Excise. It is therefore crucial that before starting to issue and receive VAT invoices, the foreign entity should know all the terms and conditions of their use and what by law they should contain. These are the full bookkeeping records which Polish entities are required to keep. Accounting law provisions are creating some confusion for foreign companies, due to their imprecise wording.
Interpretations therefore differ.
Another common concern is the influence which VAT registration has on the company's corporate tax obligations in Poland. It should be said that liability for corporate income tax arises when the activity of the foreign company can be considered as one carried out via a permanent establishment in Poland. A permanent establishment would be created if the presence of a foreign company is declared as a fixed place of business. In my opinion, simply registering a foreign entity for VAT does not of itself generally create a permanent establishment in Poland. Whether the question of permanent establishment arises depends on the company' individual situation and on the provisions of the tax treaties concluded between Poland and other countries.