- The concept of “fixed establishment” is crucial in determining which EU Member State can collect VAT on cross-border B2B services.
- The CJEU’s ruling in Titanium Ltd (C-931/19) clarified that a fixed establishment requires a sufficient degree of permanence and a suitable structure of human and technical resources.
- Merely having a VAT registration or identification number does not constitute a fixed establishment.
- The existence or absence of a fixed establishment affects whether the reverse charge mechanism applies, shifting VAT liability from supplier to recipient.
- The Titanium Ltd case involved a company managed outside the EU, raising questions about the application of these rules in cross-border contexts.
Source: kancelaria-skarbiec.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.
