- The European Court of Justice is considering the VAT relevance of transfer pricing adjustments in case C-726/23, Arcomet Towercranes.
- The Italian Revenue Agency has established that transfer pricing adjustments are not subject to VAT if they align profit margins to arm’s length values without being a specific remuneration.
- The European Commission and VAT Committee have discussed the potential connection between transfer pricing and VAT.
- The VAT Expert Group supports the principle of a direct link between adjustments and the initial supply of goods or services.
- The VAT Expert Group suggests a simplified approach where transfer pricing adjustments are outside the VAT scope if parties have full deduction rights.
- The European Commission has not issued general rules due to the complexity of the issue, leaving case-by-case evaluations.
- The case involves a Romanian company paying a Belgian parent company to align profit margins with market values.
Source: eutekne.info
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.
