- 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.
Source Scconline.com
