If a tax authority in the European Union is claiming that you have a fixed establishment, you should take the following steps:
- Review the relevant tax laws and regulations to understand the definition of a fixed establishment and the criteria used by the tax authority to determine its existence.
- Gather all relevant documentation, such as contracts, invoices, and records of business activities in the country in question, to support your position.
- Consult with a tax advisor or a tax lawyer familiar with European tax laws to obtain an understanding of your rights and obligations.
- Prepare a response to the tax authority, explaining your position and providing supporting evidence.
- Submit the response to the tax authority, and follow up with them to ensure that your case is being handled in a timely and appropriate manner.
- Consider appealing the decision if you disagree with the tax authority’s assessment.
It is important to take prompt and appropriate action in response to a claim by a tax authority, as failure to do so may result in penalties and interest. Additionally, seeking professional advice can help ensure that your rights are protected and that you comply with your tax obligations in a manner that minimizes the risk of further disputes.
Note that the specific steps you need to take may vary depending on the country and the tax laws in question, so it is important to obtain tailored advice based on your specific circumstances.
