VAT Belonging: Determining Where Supply Takes Place

• VAT “belonging” determines the place of supply, which affects VAT rate and which country tax is due in.
• A business usually belongs where it has its business establishment, then a fixed establishment, and if there are multiple, the one most directly connected to the supply.
• Business establishment is generally the principal place of business; fixed establishment means a permanent setup with enough technical and human resources to provide/receive services.
• If no relevant business establishment exists, belonging is based on usual place of residence; for companies, this is where they are legally constituted.
• When multiple establishments exist, each supply must be assessed separately using facts like where services are provided/consumed, contractual documents, and where decisions are made.

Source: marcusward.co

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.

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