- The Advocate General of the European Court of Justice concluded that fees based on transfer pricing policy fall within the scope of VAT.
- Arcomet, a crane rental company headquartered in Belgium, has group entities in the EU, including Romania.
- A transfer pricing agreement was made between the Belgian headquarters and the Romanian entity for services like fleet management and supplier negotiations.
- Fees were calculated using the Transactional Net Margin Method from OECD guidelines.
- The Romanian entity paid and deducted VAT on invoices from the Belgian headquarters, but the Romanian tax authority denied the VAT deduction.
- The Advocate General stated that whether fees fall under VAT depends on the specific case.
- It must be determined if there is a legal relationship with mutual services and if the fee is the actual value for a specific service.
- The agreement between the Belgian headquarters and the Romanian entity involves services and a fee arrangement.
Source: meijburg.nl
See also
- ECJ C-726/23 (Arcomet Towercranes) – AG Opinion – Transfer Pricing Adjustment for intra-group services subject to VAT; documentation required
- Briefing Document: Advocate General’s Opinion in Case C-726/23 (SC Arcomet): VAT, Transfer Pricing and Intra-Group Services
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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.
