- Italian Revenue Agency issued Answer No. 266/2024 on transfer pricing adjustments and VAT implications
- Guidance provided on how transfer pricing adjustments for intercompany VAT transactions should be treated for VAT purposes
- Case involves taxpayer engaged in intra-community purchases, imports, processing, and exportation to the U.S.
- Clarification sought on whether transfer pricing adjustments affect taxable base for export transactions
- Transfer pricing adjustments are relevant for VAT if parties intend to modify agreed consideration
- Parties in this case set consideration in line with arm’s length principle
- Total amount of taxpayer’s second invoice subject to VAT considerations
- Both invoices in question fall under non-taxable regime according to Article 8 of VAT Decree
Source: globalvatcompliance.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
