- The CJEU ruled in Dong Yang Electronics (C-547/18) that the mere existence of a subsidiary in an EU Member State does not automatically constitute a “fixed establishment” for VAT purposes for the parent company.
- The case involved a Polish subsidiary providing services to a Korean parent company, with the subsidiary maintaining its own facilities, VAT number, and legal personality.
- The parent company did not have personnel, property, or technical infrastructure in Poland, and the service provider relied on this to invoice without charging Polish VAT.
- The ruling clarified the limits of a service provider’s duty to inquire about the existence of a fixed establishment for VAT purposes.
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.
