What rate of VAT does a real estate agent from Poland add to the invoice when sending a commission invoice to Spain?

Article 28 of the Polish Value Added Tax (VAT) Law determines in which country a service should be subject to VAT.

According to Article 28, the rule of thumb is that the place of supply of services to taxpayers is the place where the recipient of the service has a place of business. This also applies to the place where the property being sold is located. Therefore, a real estate broker from Poland, regardless of whether he is registered for EU VAT, will issue an invoice with a 0% VAT rate.

Article 28 is crucial for entrepreneurs providing services on an international scale, as it determines where VAT should be paid for services rendered. Correctly determining the place of supply of services is important to avoid double taxation or non-taxation.

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