As the questions asked of the CJEU in the case were very specific, the immediate impact will primarily fall on corporate groups that include toll manufacturers. However, by reiterating principles set forth in earlier case law and further clarifying the concept of a fixed establishment, the decision is expected to increase legal certainty for all multinational groups performing economic activities through established subsidiaries.On a national level, this decision will hopefully bring a conclusion to the different cases involving toll manufacturers. It remains to be seen how the Belgian tax authorities will deal with this judgment in other cases with different facts and circumstances and, more specifically, in the circular letter that has been announced and that is expected to be published shortly.
Source: taxathand.com
See also
- ECJ C-232/22 (Cabot Plastics Belgium) – Judgment – Toll manufacturing with ancillary services does not lead to Fixed Establishment
- Summary of ECJ-232/22 (Cabot) – No fixed establishment due to lack of human and technical resources even if ancillary services are performed, exclusivity
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
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