VATupdate

Fixed establishmend also deemed to be involved/intervene in case of passive operation

  • Although the regulatory provision ‘concerns only active transactions, there are no obstacles to a mirror reading of the same in relation to passive transactions carried out by the building organization”.
  • Therefore, the Italian branch also assumes an active role with respect to the purchase of gas, ‘during” the passive operation, since the latter also has the character of a continuing operation.
  • As a result of this reconstruction, the purchase is to be considered directly charged to the Italian permanent establishment, which is required to apply the reverse charge mechanism.

Source: eutekne.info

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