In the case of Welmory Sp z.o.o. Case C-605/12, the AG has suggested that a supplier may have created a fixed establishment of his EU customer such that the supplier should charge VAT. The final ruling may have to come from the national court in Poland, but the AG is saying that the permanent presence of human and technical resources which is required for such a customer to have a fixed establishment in a country need not necessarily belong to it.
The case involved an associated company in Cyprus (the customer company) and it is possible that the eventual CJEU judgment may limit the application of the reasoning to groups of companies. As such this may be just an extension of the “auxiliary organ” test laid out in the older European Court of Justice case of DFDS A/S Case C-260/95. However, it does seem likely that the test will extend wider. In some ways this may be of benefit to insurers, as it may become easier to prove there is a fixed establishment of a company which would entitle it to be VAT grouped in a country where otherwise it would not be eligible.