The company that has to pay a penalty can defend itself. The penalty imposed by the tax administration must be proportionate to the objectives set by the VAT Directive, i.e. to ensure tax collection and to prevent fraud.
When a business offers several services to its customers at the same time, the question arises as to whether these different services should be subject to a single VAT treatment or whether they should be treated separately? In this context, the Court has developed two exceptions to the principle of independence of supply, namely single complex supplies and non-independent ancillary supplies.
When does the presence of your company abroad constitute a permanent establishment for VAT purposes?
The answer is not simple. Many companies find themselves in a “grey zone”, which is generally a source of conflict with the local tax authorities. And no European country is spared, as evidenced by the growing number of court cases on the subject regularly ending up before the European Court of Justice.