The article examines the CJEU ruling on whether a subsidiary automatically constitutes a fixed establishment for VAT purposes. It explains that a subsidiary must satisfy substantive conditions under Article 11 of Implementing Regulation No 282/2011, and that a third‑country parent operating through a subsidiary in Poland does not automatically create a fixed establishment. The ruling also clarifies that EU‑Korea FTA restrictions on corporate forms do not affect the fixed establishment concept.
The Court ruled on 7 May 2020 that a subsidiary does not automatically constitute a fixed establishment; it must meet substantive conditions under Article 11 of Implementing Regulation No 282/2011.
No; the ruling confirmed that the requirement to operate through a subsidiary under the EU‑Korea Free Trade Agreement does not create an irrebuttable presumption of a fixed establishment.
The subsidiary must have sufficient permanence and a suitable structure in terms of human and technical resources to receive and use the services supplied for its own needs; mere possession of a VAT ID is not enough.
No; the Court held that the agreement’s restrictions on corporate forms do not influence the fixed establishment concept.
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The Invoicing Hub · 3 days ago
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Anadolu Agency · 5 days ago
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SAFT Validator · 12 days ago
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Crowe Poland · about 1 month ago
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E-Invoice · about 1 month ago
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Prawo · about 1 month ago
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