- Multinational companies face challenges with national tax rules, especially for internal group services.
- OECD guidelines on transfer pricing aim to ensure correct tax bases, prevent double taxation, and reduce disputes.
- Transfer prices are the prices for asset or service exchanges within a group, which should align with independent company prices.
- Tax authorities can adjust profits if transfer prices do not meet the arm’s length principle.
- OECD guidelines offer methods to comply with this principle.
- The relevance of these guidelines for VAT is questioned.
- Advocate General de La Tour suggests that VAT applicability of transfer pricing should be case-specific.
- The transaction in question should be subject to VAT, as the Romanian company failed to prove the necessity of services for taxable activities.
- Tax authorities may request additional information beyond invoices to demonstrate deductibility, respecting proportionality.
Source: nlfiscaal.nl
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.
