ECJ Case: Belgian place of supply rules for VAT

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The European Court of Justice (ECJ) issued a preliminary ruling in Case No. C-232/22, which addresses the Belgian place of supply rules for VAT. This ruling clarifies the VAT obligations related to a contractual arrangement between Swiss and Belgian companies, involving product processing and additional services.



The case revolves around a Swiss company that entered into a contract with a Belgian company for product processing. The Belgian company also provided storage and other related services on behalf of the Swiss company. Based on the activities performed in Belgium, the Belgian tax authorities determined that the Swiss company had a fixed place of business in Belgium, which resulted in Belgium being considered the place of supply for VAT.



However, upon the request for a preliminary ruling, the ECJ interpreted the EU Directive 2006/112/EC on the common system of VAT. The ECJ concluded that the Swiss company did not possess a fixed establishment in Belgium that would warrant Belgium being the place of supply for VAT. The ECJ reasoned that the Swiss company lacked the necessary permanence and suitable human and technical resources to receive and utilize services in Belgium for its own needs.




Source: Europa.eu

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