- The Court of Justice of the European Union issued a ruling on VAT on international services on June 13, 2024
- The ruling is important for companies operating in international business models and within capital groups in the EU
- It clarifies that specific technical and human resources and their utilization are crucial for determining the place of service provision and tax liability
- The ruling helps in avoiding double taxation and ensuring transparency and legal certainty in international transactions
- The case involved two companies within the same group: Adient Germany and Adient Romania
- The tax authority determined that services provided by Adient Romania to Adient Germany were subject to VAT in Romania
- The CJEU ruled that belonging to the same group does not automatically mean having a fixed establishment for VAT purposes
- The CJEU also stated that having a structure in another EU member state does not automatically imply the existence of a fixed establishment
Source: mddp.pl
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.
