The Evolution of the Concept of Fixed Establishment (“FE”) and the Digital Economy
The Evolution of the Concept of Fixed Establishment (“FE”) and the Digital Economy

Summary/Abstract: The article aims to cover the issue of foreign entities having a “fixed establishment”in a given country. A phenomenon discussed at length in recent months, but onethat entities conducting digital business seem to have not really explored in greatdetail in the context of determination of the principles of taxation of VAT transactions.In this article, we will attempt to analyse the definition of FE on the basis ofboth binding legal regulations and the existing Polish and EU judicial decisions.At the same time, we will try to answer the question about the impact of the practiceof tax authorities pursued in the area of interpretation of the conditions for a FE tobe established on the stability of tax settlements of taxpayers operating in the digitalindustry. In addition to that, the authors will also try to arrive at a balance amongthe current views on FE, which depict Poland from the tax administration perspectiveas a country with highly unstable tax practices, detached from logical argumentsand unaware of the nature of business.

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