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"Permanent Establishment" for EIS Purposes

"Permanent Establishment" for EIS Purposes

Client lives abroad but has UK company importing goods into UK. The goods are stored in a bonded warehouse and sent directly from there to the customers. For EIS purposes, storage of goods is considered to be preparatory or auxiliary in nature, but not much else goes on in this company (just the admin), so could the bonded warehouse be considered a permanent establishment for EIS purposes?


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19th Feb 2016 10:51

A permanent establishment is a permanent establishment. The use of facilities for the purpose of storage, display or delivery of goods is not a permanent establishment (ask Amazon).

So question one is how are sales made to the customers?

Question two, unrelated to your query, is are you sure that the company is UK resident?

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By chatman
19th Feb 2016 11:56

Sales and management abroad.

Thanks for your response Portia.

Sales are made to directly to customers and via the Amazon Marketplace.

Central management and control is in the Channel Islands but the company was incorporated in the UK this year, so I assumed it was UK resident.

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