Google Answers Logo
View Question
Q: Calculation of VAT for services in Poland and invoicing an Offshore Company ( No Answer,   1 Comment )
Subject: Calculation of VAT for services in Poland and invoicing an Offshore Company
Category: Business and Money > Accounting
Asked by: dajb1874-ga
List Price: $100.00
Posted: 25 Aug 2006 03:32 PDT
Expires: 30 Aug 2006 11:47 PDT
Question ID: 759382
Company X who is registered in Poland as a Travel Agent provides
activities (games, sports etc) for foreign clients visiting Poland by
subcontracting suppliers in Poland. Company X then invoices the

Company X is unclear how to calculate VAT on the invoice for clients,
the clients are all tourists but it is unclear whether the activities
can be classed as a tourism service or not in Polish law?

We understand there are two possible ways of calculating the VAT:

1. COMPANY X adds vat on their margin at 22% and does not reclaim any
vat included in the buy price, which could be at 0, 7 or 22%.

2. COMPANY X adds 22% to the to sell price and reclaims the VAT
included in the buy price which could be at 0, 7 or 22%.

Which is correct? Or is there another way?

(The buy price is the price X pays supplier and the sell price is what
the client is charged)

The next question is, if an offshore company supplies the clients to
us then does company X still charge VAT in the invoice they issue to
the offshore company (Gibraltar)? (Company X buys the activity from a
local supplier and then sells it on to the offshore company for a
There is no answer at this time.

Subject: Re: Calculation of VAT for services in Poland and invoicing an Offshore Company
From: myoarin-ga on 25 Aug 2006 10:08 PDT
I think the answer is clear-cut, your alternative no. 2 is correct.

Your final question, it seems, would fall under the 0% VAT as an
"Intra-Community supply of goods", but I have some doubts about this,
as you and the local supplier of the touristic activity remain in
Poland, i.e., not a simple export of goods.  Even if the Gibraltar
entity is selling the activity, there is an actual or implicit
contract for the service/goods to be provided in Poland.  As you say,
"the offshore company supplies the clients to us".

As a tourist, I have seen this documented with vouchers issued by the
offshore (Gibraltar) entity for the services to be provided locally
(in Poland).
I have no idea whether this falls under VAT  - or maybe escapes the
tax authority's notice.

Please note that this is a free comment and NOT an official answer to
your question, which only a Google Answers Researcher with a blue user
name can post.
And, of course, anything posted here is not legal or professional
advice, as you can read in the disclaimer below.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  

Google Home - Answers FAQ - Terms of Service - Privacy Policy