- Fixed establishment (FE) under EU VAT legislation refers to a business location with permanence and resources
- FE crucial in determining place of supply of services and accountable person for VAT purposes
- Tax authorities in EU have taken broad view of FE concept, leading to CJEU judgments
- CJEU ruled that FE cannot provide services to itself, impacting VAT scope
- Latest case before CJEU involves Adient DE and Adient RO in Romania
- Romanian tax authority required Adient RO to charge VAT on services to Adient DE
- AG proposed that an FE exists only if it substitutes for a head office located within the territory of another
Source: assets.kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
