On January 1, 2025, Poland implemented Council Directive (EU) 2022/542 of April 5, 2022, amending, among others, Directives 2006/112/EC and (EU) 2020/285, concerning the location of services provided virtually.
These changes are driven by the principle of taxing VAT at the place where said services are utilized.
What does the implementation of the directive entail?
The new rules for determining the place of supply apply, first and foremost, to services provided to taxable persons, including:
- services granting access to cultural, artistic, sporting, scientific, educational, entertainment, or similar events, such as fairs and exhibitions, and
- ancillary services regarding the access to such events, where the consumer’s presence is virtual.
The new rules for determining the place of supply also involve services connected to cultural, artistic, sporting, scientific, educational, entertainment, or similar activities, including services provided by organizers of such activities and of related ancillary services, if they are rendered to non-taxable persons (i.e., final consumers), provided the service is transmitted or otherwise made available virtually.
In case of the provision of these services to consumers, it is crucial that the services are taxed at the place where the consumer is established, has their permanent address, or usually resides. Consequently, it was essential to modify regulations governing the place of supply of services related to these activities.
Important!
We have discussed the VAT changes in Poland effective January 1, 2025, in greater detail in this article.
