VAT payer and registered office - VAT payer and registered office

VAT payer – where is the registered office? (What is the company’s registered office – discussion) Where is the office in case of renting a virtual office? In the case of renting a virtual office for business purposes, we also agree that it is the place where its properties are established as a VAT payer.  However, the case may become complicated when the virtual office is in a completely different place than the registered office.

Registered office – company

A permanent registered office activity is a place where an entrepreneur performs his business activity. This has to be done in a continuous and repeatable manner. At this point, the legal seat of the company (virtual office) ceases to be, but it’s real seat where all activities take place.

In the case of a VAT payer’s registered office, there were many decisions of the Supreme Administrative Court (NSA) and common courts. Later you can find some of them:

Company, and sole proprietorship – who is the VAT payer?

The case may be even more complicated if we are not talking about a commercial company. It is more intricate for a sole proprietorship. Yes, an entrepreneur may have a registered business activity in a virtual office. On the other hand, accounting and all its documentation can be kept at home and at the same time have a company in another location. In this case, the real registered office activity is the place where the company is located. Because it is the core of running a business.

VAT payer – How does it work in practice?

In practice, the Tax Office assumes that the registered office activity is the seat of the company. The seat declared in the National Court Register (KRS) or CEIDG (Central Records and Information on Business Activity). Exceptionally, in the case of a large enterprise, it may apply for a different VAT payment structure. They do that in order to protect the interests of the tax office. An example of such a situation may be the registration of a company in Warsaw. But the company would be conducting the entire production activity in a town near Warsaw. Inspection
Tax inspection

Am I taking a risk with a virtual office?

No. We have never seen a situation like that! Where someone have questioned the correct registration of a company and the correct local jurisdiction of a VAT payer. So far, we have had a lot of tax inspections in our offices. We have never encountered any questioning of the properties of the declared seat of the VAT payer.

This question is asked in the context of fiscal control. You can read more about it here – virtual office and tax inspection.

Do you want to know more about the company’s registered office? How it affects the legal and economic situation of an entrepreneur? You can read it here – What is a company’s registered office?

Leave a Reply

Your email address will not be published. Required fields are marked *