Answer no. 529/2021 – Relevance for VAT purposes of price adjustments

With the response to question n. 529 of 6 August 2021, the Inland Revenue expressed its opinion on the VAT treatment of the price adjustments of the goods determined on the basis of the profits achieved by the parties.

In particular, in the case covered by the aforementioned ruling, the Applicant (hereinafter “Alfa”) and “Beta”, companies operating in the pharmaceutical sector, had entered into a contract under which:

  • “Alfa” was responsible for the production and development of an active ingredient; And
  • “Beta” was responsible for the purchase of the active ingredient from “Alfa”, its transformation into a finished product and the subsequent marketing phase.

Source PwC

References to ECJ Cases



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