The recent judgment of the Court of Justice of the European Union (CJEU) in the case of Berlin Chemie has found that the use of staff and technical resources belonging to another entity in an EU member state is potentially capable of creating a fixed establishment of the user in that country for VAT purposes. Despite the UK’s departure from the EU’s VAT system, UK businesses whose trading structures include affiliates in an EU member state may still be affected.
The Berlin Chemie case concerned a German pharmaceutical company that sold its products in various markets, including Romania. Its Romanian subsidiary provided it with local marketing and legal services to promote its products and ensure that they met local regulations to allow distribution in Romania.
Source RSM
Latest Posts in "European Union"
- Advocate General’s Opinion Clarifies VAT Treatment of Transfer Pricing Adjustments in Stellantis Portugal Case
- Agenda of the ECJ/General Court VAT cases -1 Judgment, 1 Hearing till Feb 25, 2026
- The «Prefilling» headache
- The Fiscalis Programme 2021–2027: Interim Evaluation and Key Insights
- EU ViDA E-Invoicing: Key Changes and Luxembourg Implications for Cross-Border B2B Transactions
