Romania: Referral to CJEU, concept of fixed establishment for VAT purposes

Romania: Referral to CJEU

A Romanian court referred an issue to the Court of Justice of the European Union (CJEU) regarding the concept of fixed establishment for value added tax (VAT) purposes.


The case is: Berlin Chemie A. Menarini SRL (case no. C-333/20).

The case concerns a company established in Romania that performs services for its affiliated second-tier parent company established in Germany. At issue is whether the company established in Romania must be regarded as a fixed establishment of the German second-tier parent company.

KPMG observation

Given the recent CJEU judgment in the Dong Yang case (C-547/18) and the request for a preliminary ruling in the Titanium case (C-931/19), the present case again shows that the concept of fixed establishment for VAT purposes is evolving—and is now again pending for the CJEU’s judgment. The judgment may have consequences for internationally operating businesses with (sub-)subsidiaries in other EU Member States.

Read an October 2020 report prepared by the KPMG member firm in the Netherlands

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