- ECJ rules on whether a subsidiary can be a fixed establishment for VAT purposes
- A fixed establishment is characterized by permanence and structure in terms of resources
- Supplies between a fixed establishment and its head office are generally not subject to VAT
- The SC Adient case involved two group companies, Adient Germany and Adient Romania
- Adient Romania provided services to Adient Germany, which were considered VAT taxable in Germany
- Romanian tax authorities considered Adient Romania to be a fixed establishment of Adient Germany
Source: bdo.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.
Latest Posts in "European Union"
- CJEU Ruling: VAT Treatment of Transfer Pricing Adjustments Between EU Member State Companies
- CJEU Rules Intra-Group Payments Under Transactional Net Margin Method Subject to VAT
- European Commission launches three new CBAM Calls for Evidence
- Comments on ECJ C-726/23 (Arcomet) – VAT Applies to Transfer Pricing Adjustments, Clarifying Deduction Requirements
- EU Sugar Taxes: Diverse Approaches to Reducing Sugary Drink Consumption Across Member States
