- Arcomet Romania acquired cranes for sale or lease in Romania.
- The parent company, Arcomet Belgium, handled most commercial responsibilities.
- A 2010 study set an operating margin for Arcomet Romania between -0.71% and 2.74%.
- From 2011 to 2013, Arcomet Romania’s profits exceeded this margin.
- Arcomet Belgium issued invoices to Arcomet Romania for the excess profits.
- Arcomet Romania applied reverse charge to the first two invoices but not the third.
- The CJEU Advocate General concluded that VAT assessment for transfer price adjustments must be case-specific.
- It is necessary to determine if services were supplied for consideration.
- Arcomet Belgium supplied management services for remuneration to Arcomet Romania.
- The remuneration was determinable and subject to VAT.
- Tax authorities may request additional information to establish input tax deductibility if the request is proportionate.
Source: taxscape.deloitte.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.
