The fixed establishment concept has triggered many questions and has given rise to uncertainties with regard to the VAT position of taxable persons. The CJEU in this case concluded that a company established in an EU Member State does not have a fixed establishment in another EU Member State because it has a subsidiary there and that subsidiary provides it with human and technical resources based on contracts under which the subsidiary provides, on an exclusive basis, marketing, regulatory, advertising and representation services which are likely to have a direct impact on the company’s volume of sales.
Source: KPMG
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