- The concept of a fixed establishment for VAT purposes has been a topic of interest for tax authorities and courts, with the Court of Justice of the European Union (CJEU) playing a significant role in shaping the position of tax authorities and national judiciary in favor of taxpayers.
- The CJEU has maintained that a fixed place of business must meet specific conditions to be subject to VAT on the activity conducted there, but it can still be difficult for taxpayers to determine when these conditions are met.
- The VAT Directive and Implementing Regulation provide guidance on what constitutes a fixed establishment, while national provisions vary.
- The Polish tax authorities previously required only minimal durability to establish a fixed establishment, but the CJEU has since clarified that sufficient permanence and an appropriate structure in terms of human and technical resources are necessary.
- The availability of other facilities can also be considered, but control over subcontractor personnel and technical facilities is required for a permanent place of business.
Source EY
