Virtual office and the control of the Tax Office

Is a virtual office legal?

Registration of a company under a virtual address is becoming an increasingly common trend, especially in the case of startups. A virtual office, as an unconventional place to run your business, has already experienced difficulties related to tax offices, which as a result still raise concerns and uncertainty as to its legality among entrepreneurs. Although understandable, they are completely unnecessary! Let us emphasize once again: the virtual office service is fully legal, and any inconvenience on the part of the Tax Office relates to specific guidelines, failure to comply with which can rightly cause fear and uncertainty.

Company registration at a virtual address

In the case of facilities located in single rooms and providing only basic services, i.e. company registration and handling of its correspondence, problems may appear already at the registration stage.

A few years ago, the tax office refused to provide companies with a tax identification number (NIP), referring to the failure to indicate the number of a specific apartment in the building in the identification application and the failure to perform management functions at the registered address of the Company.

In 2014, the Supreme Administrative Court issued a judgment in the famous case II FSK 3549/13, through which it expressed its support for virtual offices and disciplined tax offices. It stated that they do not have the competence to control the suitability of the premises (real estate) provided as the taxpayer’s seat to perform management functions or conduct business activities there.

Nevertheless, there is still distrust among officials towards virtual offices. It is also justified because it is difficult to prove that in one room dedicated to receiving mail for a large number of entities, the company is actually able to work and conduct business.

Virtual address and registration for VAT

Entrepreneurs who do not have their own registered office face difficulties not only in obtaining a NIP number, but also in registering for VAT.

Tax officials are legally obliged to check the company before being entered in the register.

In a situation where the contractor indicates a place as the seat of the company that is inconsistent with the scale or type of its activity, or when the tax office contacting the virtual office cannot encounter the entrepreneur, there are justified doubts as to the credibility of the entity.

In this case, the Supreme Administrative Court complied with the officials, issuing the decision I FSK 1363/17. The court stated in it that the address made available to many companies for the purposes of registration in the National Court Register, where no activity is actually carried out, including the management board, cannot be considered the seat.

Virtual office as a flexible business center

The situation is completely different in the IdeaPlace business center.

For almost a decade, we have been providing comprehensive business support to companies in the capital of Lower Silesia. A virtual office is one of our services that goes far beyond its basic assumptions and also allows for stationary business.

Our clients have physical access to office space in the form of a coworking zone, serviced offices and rooms for business meetings, and also, whenever they need it, they are surrounded by professional support of a virtual assistant. All based on flexible conditions resulting from the current needs of customers who use additional services whenever they need it and bear costs adequate to their actual use.

Thanks to our many years of experience and a comprehensive approach to the virtual office service, we can boast a credible reputation and constantly earned trust on the part of the subordinate tax office.

In order to obtain feedback on key issues, such as the customer’s right to use the address, the office often contacts IdeaPlace rather than the entrepreneur, which significantly speeds up and streamlines the process of company registration and relieves the entrepreneur by not involving him in unnecessary formalities. However, in situations where this is not the case, our team is ready to help, answering any questions that arise and supporting the smooth course of the registration process.

Tax control in a virtual office

In the case of fiscal control, the situation looks equally efficient and safe.

Let’s start by debunking some myths.

Firstly, the visit of officials at the virtual address will in no way affect the outcome of the inspection or complicate its course. IdeaPlace has a spacious office space that will allow you to carry out this procedure in comfort and strengthen the credibility of officials towards your company.

Secondly, the seat of the entity at a virtual address does not have to arouse greater interest in your company, and even less does not cause more frequent tax inspections.

You do not have to worry about anything, and in case of any doubts, you can always contact us. We are here to help and we will gladly dispel them.

The course of the fiscal control

A fiscal control is always preceded by a letter in which the office asks for a reply with an appointment for the date of the control.

Our reception team informs each client on an ongoing basis about the delivery of new correspondence according to the arrangements made when signing the contract. Some customers always receive a scan of the letter’s contents in the notification, some receive it only on request, and some customers only receive a notification about its sender and type.

If you are in a group that has not read the content of the letter and has not responded to it, don’t panic yet.

According to the regulations, you do not have to reply to the letter. In such a case, however, you have to take into account that the lack of a reply results in the imposition of the inspection date by the tax office, and then it may even fall on the next day.

If you cannot be present during the inspection, it is worth remembering that you have the option of appointing a person representing you during this procedure.

It is very important to remember that the control goes to the address indicated as the place of keeping the accounting documents. It is usually not the same as the registration address, because the vast majority of clients decide to leave accounting documents to the accounting company with which they cooperate. In that case, you should send officials to the right place.

Then comes the day of the tax inspection. If it takes place in the seat of a virtual office, then the perfect choice will be to use a closed business room for this time, for which you get a permanent discount as part of a virtual office. In a private room, you will be able to go through the fiscal control procedure in peace, and if you need to make copies of documents, the reception staff will immediately help you.

It is also worth remembering that officials visiting your company must have an authorization to carry out the inspection, which includes its specified scope, and you are obliged to show the inspector only those documents for which he is entitled to inspect the document.

Looking through the prism of our many years of experience, observations and talks with our clients, we know that the tax control at IdeaPlace runs smoothly and leaves unpleasant experiences.

Our comprehensive approach to the virtual office, professional service and years of trust on the part of the Tax Office mean that you can trust us and not be afraid of any difficulties.

Jutta Hutsch-Kasprzyk

Jutta Hutsch-Kasprzyk is an experienced Chief Operation Officer who has focused on optimizing business processes and reducing operational costs throughout her career. She is a talented negotiator, building strong relationships with key contractors and customers. Her skills in managing company affairs, organizing team work, and developing strategies have contributed to the success of IdeaPlace on the business map of Wrocław.