Article about the differences between a PE for CIT purposes and a FE for VAT purposes.
“The location of a FE is important in determining the place of supply of services for VAT purposes. Most cross-border services supplied to businesses are now taxable on a reverse-charge basis meaning that it is the recipient rather than the supplier who accounts for the VAT on these. Therefore, in order to correctly account for the receipt of international services the place of receipt must be identified. Exceptionally certain services such as work on immovable goods, hotels, meals, short-term car-hire and events (concerts, classes) are taxable where the services are physically supplied.”
The article also makes reference to the Dong Yang case, a summary of which can be found HERE.
Source: Deloitte
