The CJEU ruled in the C-533/22 Adient judgment that receiving toll manufacturing services from a related party does not create a fixed establishment for VAT purposes. The ruling clarified that belonging to the same group or having a service contract with a company in another member state does not automatically create a fixed establishment. Additionally, the presence of a structure in the other member state that intervenes in the supply of finished products, or the fact that supply transactions are mostly carried out outside that member state, does not establish a fixed establishment for VAT purposes.
Source Baker & McKenzie
See also
- C-533/22 (Adient) – Judgment – NO Fixed establishment solely on the basis that the two companies belong to the same group
- Roadtrip through ECJ Cases – Focus on ”Fixed Establishments” (Art. 44 & 45)
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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