On the matter of fixed establishment, Greek Supreme Court had consistently ruled in the past, contrary to relevant CJEU case law, that fixed establishment may be created even when the human and technical resources of a Greek subsidiary provide only ancillary services to a foreign affiliate that are necessary for the performance of the foreign entity’s main activity.
However in the cases handled by our tax litigation team, the Supreme Court, accepting our relevant argumentation, wholly reversed its position and narrowed its definition of fixed establishment, ruling that the human and technical resources of the Greek subsidiary should be placed at the disposal of the foreign entity, in order to perform the latter’s main activity in Greece, thus removing ancillary services from the definition of fixed establishment. Therefore, marketing services provided by a Greek subsidiary do not create a fixed establishment for the foreign recipient entity.
Source Zepos & Yannopoulos
Latest Posts in "Greece"
- Procedural Fines Under Tax Procedure Code: Types and Content for Late Declarations
- Notification of Legal Opinion 18/2025 on VAT Treatment for Commonwealth War Graves Commission Expenses
- Optional Monthly VAT Declarations Introduced for Businesses with Simplified Accounting Until 31/12/2023
- Greece to Implement Mandatory B2B E-Invoicing for Large Companies Starting February 2026
- Optional Monthly VAT Declarations for Businesses with Simplified Accounting Starting by 31/12/2023