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Cost Sharing Agreements: A Solution to Avoid ABB Taxation on Intercompany Transactions

  • There is no option for affiliated entities to form a fiscal unity to avoid ABB on intercompany transactions
  • Cost sharing agreements can be used to avoid ABB-taxation on intercompany transactions
  • A cost sharing agreement is a legal agreement where costs are shared based on utilization of services
  • The entity incurring the costs passes on the exact costs to other group entities
  • The agreement and allocation key must be in place before the year-end.


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.


VAT news
VAT news