Case law
3 June 2020

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.

Zuzana Šidlová

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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:

http://curia.europa.eu/juris/document/document.jsf?text=&docid=226290&pageIndex=0&doclang=EN&mode=lst&dir=&occ=first&part=1&cid=692287

 

 

 

 

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