EU: fixed establishment -Dong Yang Electronics


CJEU’s decision on whether a subsidiary can constitute a fixed establishment for VAT purposes

The Court of Justice of the European Union issued on May 7, 2020 its long-awaited judgment in Dong Yang Electronics (Case C-547/18) which deals with the question on whether a subsidiary of a foreign-based parent entity can qualify as a fixed establishment for the acquisition of supplies (receiving “FE”).

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South Korea – VAT on electronic service provided by foreign service providers – changes as of 1 July 2015


234936_web_R_K_by_Jasper J. Carton_pixelio.deKorea joins the group of countries which require non-established companies to register and account for on their B2C sales of electronic service into South Korea. The VAT law has recently been amended to apply VAT to the supplies of electronic services (e.g. applications, games, music, films, electronic documents, software, etc.) purchased from non-resident service providers (i.e. offshore app developers or through offshore open markets app stores).Read More »

Korea: Zero-rated VAT for Clinical Trial Services


Photo_R_RGB_HK_D5_2801.jpgA new rule, likely to come into force in February 2015, will benefit Korean companies providing clinical trial services.

This rule will allow Korean hospitals and medical institutions, which provide clinical trial services to foreign pharmaceutical companies located outside of Korea and receive consideration in foreign currencies, to apply zero-rated VAT on these services.Read More »