- The European Court of Justice (ECJ) ruled that a service recipient does not have a fixed establishment in another EU country merely because they ordered a comprehensive service from an affiliated entity.
- The ruling is binding not only for Romania and Germany, which were directly involved, but also for all other EU member states.
- VAT regulations are standardized across the entire European Union.
- This is the fifth ECJ ruling concerning the concept of a fixed establishment for VAT purposes.
- According to Article 44 of the EU VAT Directive, the place of supply of services to another company is generally the place of the recipient’s business establishment.
- If services are provided to a fixed establishment of the recipient located in a different place than the business establishment, the service should be taxed at that location.
Source: podatki.gazetaprawna.pl
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.
Latest Posts in "European Union"
- Roadtrip through ECJ Cases – Focus on ”Vouchers” (Art. 30a, 30b, 73a)
- Roadtrip through ECJ Cases – Focus on ”Composite supplies”
- Roadtrip through ECJ cases: Focus on ”VAT rates” (Art. 96-99)
- VAT Committee Clarifies Single-Purpose Vouchers and ECJ Judgment on Supply and Taxation Rules
- EU Commission Unveils Strategy for Digital VAT Reform Implementation and Timelines
