145. ECJ - VAT Fixed Establishment Concept (ARO)

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The ECJ has handed down a ruling in the ARO leasing case, reported on in article no. 47. At issue was whether ARO Lease BV, a Dutch limited liability company, had a fixed establishment in Belgium constituting the place of performance of its Belgian car leasing activities for VAT purposes. ARO and the Belgian tax authorities argued that this was the case. The ECJ has now rejected this position and decided in favour of the Dutch tax authorities, who contended that the place of performance of the Belgian leasing activities was in the Netherlands at ARO's principal place of business because ARO had no VAT fixed establishment in Belgium (decision of 17 July 1997 - DStRE 1998, 725). The case was decided under Article 9 (1) of the Sixth VAT Directive.