- Adient Germany and Adient Romania, both part of the Adient group, specialize in manufacturing and selling car seats and other vehicle components.
- Adient Germany has a contract with Adient Romania for processing upholstery components and providing support services. The processing involves cutting and sewing raw materials to make seat covers, while support services include receiving, storing, and managing raw materials and finished products.
- Adient Germany retains ownership of the materials throughout the manufacturing process.
- This case is the 5th judgment since 2018 on determining a fixed establishment for VAT purposes.
- The question is whether a controlled or group company can be considered a permanent establishment of the parent company or another group company.
- The CJEU has addressed this issue in previous cases, indicating that a company with the resources of a fixed establishment may be considered as such, even if it only acts as an assistant.
- Tax authorities have increasingly been looking for permanent establishments in group structures, leading to questions about whether a group company in Romania can be considered as such.
Source BTW jurisprudentie
See also
- C-533/22 (Adient) – Judgment – NO Fixed establishment solely on the basis that the two companies belong to the same group
- Roadtrip through ECJ Cases – Focus on ”Fixed Establishments” (Art. 44 & 45)
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases