- Customs valuation and transfer pricing rules may result in different values for the same transaction, leading to double monitoring by customs and tax revenue agencies.
- Italy’s customs agency has recognised the need to converge tax and customs disciplines for transfer pricing determinations.
- The World Customs Organization has specified how customs can take transfer pricing studies into account.
- Italy’s working group for the Italian Revenue Agency and customs agency has led to the publication of two circulars, allowing traditional methods for transfer pricing to be used by customs.
- Economic operators can submit transfer pricing documentation to customs agencies.
- The use of simplified declarations provides flexibility for economic operators when the exact value of goods is unknown at the time of customs clearance.
- The treatment of transfer pricing adjustments for customs purposes needs clarification, particularly after the European Court of Justice’s ruling in the Hamamatsu case.
Source International Tax Review
