Can a subsidiary cause the existence of VAT fixed establishment of the parent company?
Court of Justice of the EU published decision in case C‑547/18 Dong Yang Electronics sp. z o.o. v Dyrektor Izby Administracji Skarbowej we Wrocławiu dealing with the question of existence of a fixed establishment for VAT purposes. Should the fixed establishment of the customer exist in Poland, the respective services would be subject to Polish VAT.
In this respect the Court of Justice of the EU i. a. held that the supplier of the services
- may not infer the existence, in the territory of an EU Member State, of a fixed establishment of a company established in a non-Member State from the mere fact that that company has a subsidiary there,
- is not required to inquire, for the purposes of such an assessment, into contractual relationships between the two entities.
More information can be found on the following link: