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By Thibaut BOULANGÉ, Dr. Hannes GURTNER, Dr. Barbara FLECKENSTEIN-WEILAND Martijn JAEGERS, Atoz Tax Advisers *
In its decision C-931/19 (“Titanium case”), the Court of Justice of the European Union (“CJEU”) ruled that a foreign company should not be considered as having a fixed establishment for VAT purposes in a Member State if its activity in that country is limited to the ownership and the exploitation of a real estate without having any human resources locally.
Consequently, a Luxembourg property company (hereafter “PropCo”) owning and exploiting foreign real estate should not be considered as having a fixed establishment for VAT purposes in this foreign jurisdiction if it does not have human resources in the country in which the...
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