In the case of a retrospective discount or transfer pricing adjustment there may be VAT consequences for both parties involved in a transaction. In the recently decided World Comm Trading case, the European Court of Justice (ECJ) ruled that if a rebate is given on an overall invoice for both intra-Community and domestic supplies, the customer must correct the VAT deducted. This judgment is also of importance for retrospective transfer pricing adjustments.
- ECJ case C‑684/18 (World Comm Trading) – Judgment – Global rebates required local adjustments
- Remember … VAT Expert Group on Transfer Pricing Adjustments – Paper/Opinion issued on April 18, 2018