EU Court to Clarify VAT Obligations for Multinational Companies in Transfer Pricing Adjustments

• The Bucharest Court of Appeals has referred a case to the CJEU regarding the VAT treatment of transfer pricing adjustments.
• The case involves a Romanian company that is part of an international crane rental group.
• The company received equalization invoices from its Belgian parent company without VAT, which it partially attributed to intra-EU purchases of services and self-assessed VAT on them.
• Tax inspectors concluded that the invoices pertained to management services and denied the right to deduct the self-assessed VAT.
• The Bucharest Court of Appeals has asked the CJEU to clarify whether the invoiced amount constitutes a payment for a service that falls within the scope of VAT and whether additional documentation is required to justify the use of the services purchased.
• The outcome of this case will provide clarity on VAT obligations and documentation requirements for multinational companies operating within the EU.

Source: kpmg.com

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.

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