This month’s update by Bryn Reynolds and Gary Barnett (Simmons & Simmons) covers the CJEU ruling on fixed establishments.
Fixed establishments and service subsidiaries
In Berlin Chemie A (Case C-333/20) the CJEU has again considered the circumstances in which a subsidiary may constitute a fixed establishment of its parent for the purposes of receiving supplies. The court emphasised that the mere existence of a subsidiary providing services to its parent will not be sufficient to amount to a fixed establishment and that it is necessary both for the parent company to have available to it the necessary human and technical resources as if they were its own and for that fixed establishment to receive the services for its own needs.
In particular the court has held that a parent company having its head office in one member state does not have a fixed establishment in another...
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This month’s update by Bryn Reynolds and Gary Barnett (Simmons & Simmons) covers the CJEU ruling on fixed establishments.
Fixed establishments and service subsidiaries
In Berlin Chemie A (Case C-333/20) the CJEU has again considered the circumstances in which a subsidiary may constitute a fixed establishment of its parent for the purposes of receiving supplies. The court emphasised that the mere existence of a subsidiary providing services to its parent will not be sufficient to amount to a fixed establishment and that it is necessary both for the parent company to have available to it the necessary human and technical resources as if they were its own and for that fixed establishment to receive the services for its own needs.
In particular the court has held that a parent company having its head office in one member state does not have a fixed establishment in another...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
