Many people are unaware that the concept of permanent establishment from a VAT perspective follows an atypical logic which should not be confused with the concept in direct corporate tax. If misinterpreted, this notion can have very serious consequences.
If your company has a minimum infrastructure (warehouse, office, etc.) or staff (e.g. sales staff) abroad, it can quickly be confronted with the tricky issue of a possible “permanent establishment” in the country in question. Some tax authorities (Spain, France, Poland, etc.) no longer hesitate to reinterpret this notion as they see fit…
For example, does the simple fact of letting a building abroad constitute a permanent establishment for VAT purposes?
Source vatdesk.eu
See also
- C-931/19 (Titanium) – Judgment – No fixed establishment if the owner of the property does not have his own staff
- ECJ Cases – Focus on ”Fixed Establishments” (Art. 44 & 45)
Latest Posts in "European Union"
- ViDA and the Fundamental Principles of EU VAT: A Reformed Edifice on Unchanged Foundations
- FISC Committee Meeting – VAT Fraud and the Future of the Reverse Charge Mechanism
- ECJ Clarifies VAT Deduction Rights for Late Intra-Community Acquisition Invoices
- EPPO Seizes Additional Assets in €42.8 Million VAT Fraud Probe
- Comments on T-198/25 (G. Kft) – General Court Confirms Limits on VAT Adjustment After Tax Audit
