Comments on ECJ C-726/23: Transfer Pricing Adjustments: Are They Considered VAT-Applicable Services Under EU Law?

• The CJEU delivered an opinion on whether transfer pricing adjustments are payments for services under VAT.
• Arcomet Towercranes is part of a crane rental group with a parent company in Belgium.
• A transfer pricing study set profit margins for subsidiaries between -0.71% and 2.74%.
• A contract required annual equalization invoices if profits exceeded or fell below these margins.
• Arcomet Romania received invoices from Arcomet Belgium for higher profits, declared as services.
• Romania applied reverse charge for two invoices but disputed the third as outside VAT scope.
• Romania was denied VAT deduction due to lack of evidence for taxable transaction use.
• The Bucharest Court of Appeal asked if adjustments are service consideration under VAT and if evidence is required.
• The AG noted VAT assessment on transfer pricing is case-specific due to OECD Guidelines being for direct taxation.

Source: linkedin.com

See also

• ECJ C-726/23 (Arcomet Towercranes) – AG Opinion – Transfer Pricing Adjustment for intra-group services subject to VAT; documentation required
• Briefing Document: Advocate General’s Opinion in Case C-726/23 (SC Arcomet): VAT, Transfer Pricing and Intra-Group Services

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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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