The issue with parent-subsidiary VAT fixed establishment
The concept of VAT fixed establishment has recently been the source of litigation in several Member States. In those cases, tax authorities argue that a subsidiary is the VAT fixed establishment of its parent company.
In Belgium, we have seen this growing trend whereby the Belgian VAT authorities deem a foreign parent company to have a fixed establishment in Belgium through its daughter company, or more broadly in an intra-group context (specifically toll manufacturers and distributors).
Source PwC
See also
- ECJ C-333/20 (Berlin Chemie A. Menarini SRL) – Judgment – No Fixed establishment via affiliate rendering services on an exclusive basis
- New ECJ VAT case: C-232/22 (Cabot Plastics Belgium): Belgian VAT fixed establishment for a Swiss principal, through its affiliated Belgian toll manufacturer?
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