In the case Adient (C-533/22), the ECJ again addressed the criteria for determining fixed establishments. The core issue (once again) was to clarify in what circumstances a group company is to be considered a fixed establishment of another group company. The ECJ’s comments are pleasingly clear and should assist companies to identify fixed establishments in group structures.

In the context of the new regulation of sec. 2b of the German VAT Act, many legal entities under public law are falling within the scope of VAT more quickly and more frequently. This often goes hand in hand with the right to deduct input VAT. It is good and important that the tax authorities, with a letter of the German Federal Ministry of Finance, are now providing administrative simplifications for the deduction and adjustment of input VAT.