Baltic Fibres Addresses Cross-Border VAT and Customs Issues
OREANDA-NEWS. February 07, 2012. SORAINEN Estonia advised Baltic Fibres, an international manufacturing group, and its UK parent company, on transactions within a VAT group and on permanent establishment issues, reported the press-centre of SORAINEN.
The Estonian client and their UK resident parent company form a VAT group in Estonia. This is unusual, since VAT group regulation under Estonian law is mainly targeted towards local resident companies. We advised on VAT treatment of cross-border transactions between these two companies and possible VAT consequences both in the UK and in Estonia.
The advice was complicated as supply between VAT group members falls outside the scope of VAT so that both UK and Estonian law had to be analysed as to different views on how to tax their tax residents' supply.
We also advised on the possibility of a permanent establishment risk in a situation where the parent company subcontracts the Estonian company to process goods belonging to the parent company.
The client was advised by partner Kaido Loor and associate Elvira Tulvik.
Комментарии