- The German Federal Fiscal Court has referred to the CJEU a VAT case on whether a highly automated installation in Germany can constitute a “fixed establishment” of a foreign supplier.
- The dispute involves an Austrian waste-disposal company whose drying plant in Germany is remotely controlled from Austria, while on-site work is performed only sporadically by a German subcontractor.
- Key issue: whether the installation must be able to provide the service fully and independently to qualify as a fixed establishment, or whether performing only part of the service is enough.
- The court also asks what level of “human resources” is required for a fixed establishment, and whether subcontractor personnel on site can satisfy that requirement.
- The outcome will affect who owes VAT on the service under German reverse-charge rules (Section 13b UStG): the foreign supplier or the German customer.
Source: assets.kpmg.com
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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