Determining a Fixed Establishment in the Platform Economy Sector

The project concerned the determination of whether a taxpayer operating within the platform economy creates a fixed establishment in certain EU Member States. This assessment arose in circumstances where the taxpayer had representatives in those Member States—independent entities responsible for service sales and handling complaints and requests—who were not, however, essential to the taxpayer’s core business operations.

The model was structured to ensure the taxpayer’s compliance with tax obligations without necessitating the recognition of a fixed establishment in Member States other than the taxpayer’s country of incorporation. This approach enabled the correct tax treatment while minimising the administrative costs associated with compliance, which were otherwise significant at the EU level.

Tomasz Michalik (VAT) was responsible for the tax advisory on this project.