The concept of fixed establishment (FE) is one of the limbs for identifying the location or a point of reference of a supplier or recipient for determining the taxing jurisdiction in the context of indirect tax laws. While the concept of FE was borrowed and prevalent under the European Union Value-Added Tax (VAT) law, it was introduced in the erstwhile service tax law (under the negative list regime), with its applicability being limited to a determination of taxing jurisdiction of cross-border transactions. With the concept being carried forward under the Goods and Services Tax (GST) law, it assumes increasing significance for determining the taxing jurisdiction of domestic as well as cross-border transactions.
Source Taxsutra
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
