The Controversy Surrounding the Concept of Fixed Establishment in VAT

• Since 2010, there has been much discussion about the requirements for a fixed establishment (vi) in VAT
• The concept of vi has been codified in an EU regulation, leading to many questions and uncertainties
• Tax authorities in different countries use the vi concept to assert their taxing rights, sometimes with low thresholds
• The risk of double taxation falls on taxpayers in these cases
• The vi in VAT is characterized by durability and suitable structure for services or performances
• There is debate about whether the personnel requirement for vi is still relevant in the digital age
• The author argues against lowering the threshold for vi and emphasizes the importance of legal certainty for taxpayers.

Source: taxlive.nl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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