Déjà Vu Drama: The Controversy of Subsidiaries as Fixed Establishments as Illustrated by the Adient Case

On 13 June 2024, the ECJ issued its decision in the Adient case, concerning whether a controlled company or a group company can be considered a fixed establishment for VAT purposes of the parent company or another group company. This decision reiterates that mere group affiliation or contractual agreements do not constitute a fixed establishment per se. In this article the author delves into all these questions and considers why tax authorities continue to assess companies for fixed establishment matters despite the clear guidelines provided by the ECJ.