A subsidiary cannot be a fixed establishment (FE) under EU VAT in (almost) any case. This is a (quite) reassuring takeaway for VAT businesses from the much-awaited decision by the Court of Justice of the European Union (CJEU) in Berlin Chemie A. Menarini (Case C-333/20). With its ruling on 7 April 2022, the CJEU (re?)affirmed (see Daimler and Widex (Joined Cases C-318/11 and C-319/11, para. 48)) that a subsidiary is not, per se, a FE of its parent or an affiliated company of the same group. Neither can it create a FE, by itself, a close relationship between the parent and the subsidiary due to majority shareholding control and/or exclusive service agreement.
Source Kluwertaxblog
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