The CJEU has ruled in case C-232/22 that being the sole customer of a service provider does not lead to having a VAT fixed establishment. The case involved a tolling manufacturer in Belgium providing services exclusively to a group company in Switzerland. The Belgian tax authorities claimed that the VAT place of supply of the services was Belgium, but the CJEU ruled that this was not the case. The ruling clarifies that a service provider’s resources are used for its own activities and do not constitute a VAT fixed establishment for another entity, even if they are part of the same group and the latter is its only customer. The reference to “preparatory or auxiliary activities” may also limit the application of the concept of purchase fixed establishments. Another case on the VAT fixed establishment concept (Adient case, C-533/22) is pending at the CJEU.
Source Deloitte
See also
- ECJ C-232/22 (Cabot Plastics Belgium) – Judgment – Toll manufacturing with ancillary services does not lead to Fixed Establishment
- Summary of ECJ-232/22 (Cabot) – No fixed establishment due to lack of human and technical resources even if ancillary services are performed, exclusivity
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
Latest Posts in "European Union"
- Comments on ECJ C-472/24: Court Rules Virtual Gold Not Exempt from VAT
- Comments on ECJ C-436/24 (Lyko): Court Rules Loyalty Points Do Not Qualify as Vouchers
- Comments on ECJ C-409/24 to C-411/24: Court Allows Exclusion of Ancillary Services from Reduced VAT
- CJEU: In-Game Currency Trading in Online Games Not Exempt from VAT, Not a Voucher
- Incorrect VAT Statement in Intra-Community Supplies: Taxation Before Quick Fixes and EuG Decision
