Fixed Establishment: The Indirect Tax Avatar

The concept of “fixed place of business” has long been used in international tax law as a component of “permanent establishment”.
However, the transmigration of this concept into the indirect tax sphere, known as “fixed establishment”, has resulted in doubts over its features and variations.
This article explores the VAT dimension of fixed establishment and its relevance in a permanent establishment context.
The Supreme Court has emphasized the need for a factual analysis to determine the existence of a permanent establishment and has outlined the legal tests and nuances of the emphasis on “fixed place”.
A physically located premise must be “at the disposal” of the enterprise to be considered a fixed place of business.
The term “place of business” includes any premises, facilities, or installations used for carrying on the enterprise’s business, whether or not they are used exclusively for that purpose.
A certain amount of space at the disposal of the enterprise is sufficient to constitute a place of business. Examples include a pitch in a marketplace or a certain permanently used area in a customs depot.

Fixed Establishment