Krytyka Prawa. Niezależne Studia nad Prawem

Subsidiary as a Fixed Establishment

Lipniewicz, Rafał

University of Wroclaw

295.97 KB

69 downloads

Abstract

Fixed establishment (FE) is one of the institutions of the EU value added tax system; its structure is essential to correctly determine the right tax jurisdiction of an EU Member State for the purpose of VAT settlement in situations of cross-border provision of services. However, the legal structure of a FE adopted by the EU legislator (and, consequently, adapted to national legislation of the Member States) causes uncertainty when it comes to its interpretation. In the absence of unambiguously defined conditions in EU law to consider a specific presence and activity of an enterprise to be a FE, interpretation rules contained in judicial decisions
issued by the Court of Justice of the EU play an important role. Among attempts
made by the CJEU to clarify the ‘blur areas’ resulting from the dynamics of modern
business processes, one of the most interesting ones is the possibility of considering
a subsidiary to be a fixed establishment for a parent company. The purpose of this
paper is to analyse legal and economic factors, the fulfilment of which may constitute a condition for considering a subsidiary to be a fixed establishment for
a parent company, with particular emphasis on the ruling of the Court of Justice
of 7 May 2020 in the Dong Yang case (C-547/18).

Metadata

Journal Krytyka Prawa. Niezależne Studia nad Prawem 
Volume 13 
Issue 2 
Issue date 6/2021 
Type Article 
Language en
Pagination 78-94
DOI 10.7206/kp.2080-1084.450
ISSN 2080-1084
eISSN 2450-7938