EU Tax Alert 201

CJ judgment on VAT fixed establishment concept in case of exclusive toll manufacturer (Cabot Plastics, C-232/22)

On 29 June 2023, the CJ delivered its judgment in the case Cabot Plastics Belgium BVBA (Case C-232/22) regarding the concept of fixed establishment in the manufacturing industry. In particular, the case deals with the issue of whether a taxable person has an adequate structure constituting a fixed establishment if the resources it uses belong to its service provider, who is part of the same group.

Commission presents Proposal for a Council Directive on Faster and Safer Relief of Excess Withholding Taxes (FASTER) 

On 19 June 2023, the European Commission proposed a Council Directive on Faster and Safer Relief of Excess Withholding Taxes (FASTER). This Directive introduces new rules to enhance withholding tax procedures in the European Union (EU), aiming to improve efficiency, security, and fairness for investors, financial intermediaries, and tax administrations. The proposal is part of the Commission's efforts to modernize business taxation and promote cross-border investment within the EU.

AG Kokott opines that the Commission erred in finding that Luxembourg had granted unlawful State Aid to Amazon (Amazon.com and Others v Commission, Case C-457/21 P) 

On 8 June 2023, AG Juliane Kokott delivered her Opinion in the case Amazon.com and Others v Commission (Case C-457/21 P). In her Opinion, Kokott proposed that the CJ uphold the judgment of the General Court and annul the Commission decision which found that Luxembourg had granted unlawful State aid to Amazon.com in the form of tax advantages.

European Parliament and Council adopt the Carbon Border Adjustment Mechanism (CBAM) Regulation 

On 10 May 2023, the Carbon Border Adjustment Mechanism (CBAM) Regulation was signed by the European Parliament and Council. The CBAM Regulation was published in the EU Official Journal on 16 May 2023 and officially entered into force on 17 May 2023.