Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Free Newsletter Sign Up

Tax Victory for Foreign Property Owners in Top EU Court (1)

June 3, 2021, 2:57 PMUpdated: June 4, 2021, 5:03 PM

The European Union’s top court dealt a blow to Austria’s tax system Thursday, ruling that property alone cannot constitute the fixed establishment of its overseas owner for value-added tax purposes.

The verdict confirms that despite technology’s growing sophistication and the prevalence of remote working, non-EU businesses with activities in the bloc are not liable to charge VAT if they have no local staff.

EU law states that a fixed establishment—which determines the place of supply—is a permanent, physical location with sufficient personnel and technical resources to supply goods and services.

However, the Austrian tax authority’s guidelines state that leased properties ...

To read the full article log in.

Learn more about a Bloomberg Law subscription