- The Court of Justice of the European Union (CJEU) has issued a decision in Cabot Plastics (C-232/22), which deals with the concept of a fixed establishment (FE) for VAT purposes.
- The case involved a Belgian company providing toll manufacturing services to an affiliated Swiss company, and the question was whether this created an FE for VAT purposes.
- The CJEU emphasized the importance of distinguishing between different transactions and found that the tolling services were received by the Swiss company in Switzerland, as it did not have a suitable structure in Belgium to receive them.
- The decision provides further clarity in this area of VAT law.
Source Matheson
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
