VAT Establishment Pitfalls: Lessons from HMRC Practice and Case Law

VAT establishment status affects registration, place of supply, reverse charge, input tax recovery, VAT grouping, and platform trading.
Common mistakes include assuming UK incorporation, VAT registration, or UK directors automatically create a UK fixed establishment.
HMRC and case law focus on substance over form: central management, key commercial decisions, and overall strategic control matter.
Errors in VAT treatment can cause historic exposure, irrecoverable VAT, and disputes; fixes may include deregistration, voluntary disclosures, and return adjustments.
Case law such as Muster Inns and Planzer highlights that only one business establishment exists and a permanent establishment is not the same as a fixed establishment.

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.