The Council of the European Union is implementing new legislation concerning taxes on digital activities.
How do you decide whether or not a company has a ‘virtual Permanent Establishment’ in the European Union? Does this require physical presence?
New VAT rules on electronic commerce are part of the EU’s digital single market.
It can be predicted with a degree of near certainty that some of the aimed digital activities will be based in countries that linger in approving addendums to existing tax treaties concerning the ‘virtual Permanent Establishment’.
The article analyses what possible digital activities could give cause for new criteria of Permanent Establishment for taxation purposes.