Fixed establishment (“supplier”)

A company established in the UK operated services on mobile and Internet networks by resorting exclusively to services from French operators and server centres in order to carry out its activity.

The French Cour Administrative d’Appel notes that it results from the proceedings that the company did not own any immovable property nor any staff in the UK, that it lacked an operating structure, its head office being located at a simple business address centre and that it did not declare in this country any turnover for the years 2004 to 2008 except for management fees as remuneration for administrative services. Furthermore, the tax raids conducted within the scope of article L.16 B of the French Tax Procedure Code (FTPC) revealed that the managing director, numerous accounting and commercial documents, some equipment and the address used by the company with its suppliers and its bank were located in France.

Thus, the Court held that the company should be regarded as having a fixed establishment in France, as defined by article 259 of the French Tax Code (FTC), from which it provided services for consideration.

Michel Guichard

Michel Guichard, Partner, leads the Indirect Tax activity. With more than 30 years’ experience in International and French Tax law, he advises his clients on indirect tax matters. Michel is […]

Odile Courjon

Odile Courjon, Partner, has developed a strong expertise in indirect tax issues (VAT, wage taxes, excise taxes, export control and customs) in France and overseas. She advises her clients in […]

Bertrand Jeannin

Bertrand Jeannin, Partner, supplies strategic and technical advice to French and foreign multinational groups in all aspects of their VAT and customs policies. Major focuses of Bertrand’s input involve the […]

William Stemmer

William Stemmer, Partner, has more than 15 years’ experience in Indirect Tax matters. William particularly specializes in the real estate and financial sectors. William is a lecturer at the University […]

Anne Gerometta

Anne, Director, has been advising companies on indirect tax issues for more than 15 years. Anne has developed a specific expertise on the manufacturing sector (VAT, customs and Export Control) […]