On 3 June 2021, the ECJ held that the mere leasing of land (in Austria) did not amount to a “fixed establishment” of the landlord there for VAT purposes. The landlord had no staff in Austria, but instead relied on an independent agent to manage the property.

The ECJ confirmed that, for there to be a fixed establishment for VAT purposes, the landlord (a Jersey incorporated company) would have needed to have had its own staff located in Austria. This is consistent with current HMRC guidance.

The decision can be viewed here.