The decision of the Court of Justice of the European Union (CJEU) from the end of June in the case Cabot Plastics C‑232/22 provides extremely important clarifications on the controversial issue of fixed premises for VAT purposes. This case is also common in fiscal audits carried out by the authorities in Romania, which can lead to significant financial consequences for companies due to the imposition of tax liabilities of hundreds of millions of euros.
Although there is a wealth of European case law on the issue of fixed headquarters, this decision of the ECJ is the first case concerning processing services based on an exclusive contract, which may have significant implications for business entities that apply a processor-type business model (” On the other hand, the decision is of particular importance because it analyzes, in addition to the general conditions for the existence of a permanent establishment, the categories of auxiliary or additional services that the processor can provide, not taking into account that the non-resident has a permanent establishment.
Read the rest of the article on the PwC Romania blog
The article was signed by Ana-Maria Iordake, partner of D&B David si Baias, Inge Abdulcair, director of PwC Romania.
Article supported by PwC Romania
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.