- The CJEU delivered an opinion on whether transfer pricing adjustments are payments for services under VAT.
- Arcomet Towercranes is part of a crane rental group with a parent company in Belgium.
- A transfer pricing study set profit margins for subsidiaries between -0.71% and 2.74%.
- A contract required annual equalization invoices if profits exceeded or fell below these margins.
- Arcomet Romania received invoices from Arcomet Belgium for higher profits, declared as services.
- Romania applied reverse charge for two invoices but disputed the third as outside VAT scope.
- Romania was denied VAT deduction due to lack of evidence for taxable transaction use.
- The Bucharest Court of Appeal asked if adjustments are service consideration under VAT and if evidence is required.
- The AG noted VAT assessment on transfer pricing is case-specific due to OECD Guidelines being for direct taxation.
Source: linkedin.com
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.
