EU Court Scrutinizes Transfer Pricing and VAT: Key Issues and Recent Cases

• The European Court of Justice is focusing on intra-group settlements related to VAT and transfer pricing.
• Recent cases highlight the importance of distinguishing between direct and indirect tax regulations.
• The court is examining the market-based approach’s compatibility with VAT tax base construction.
• In the Weatherford case, the court confirmed the right to deduct VAT on services used in business activities.
• The Arcomet case involves rental fee adjustments and whether they constitute taxable services.
• The Högkullen case questions VAT applicability on intra-group real estate transactions without payment.
• The Stellantis Portugal case is about the impact of transfer pricing adjustments on VAT tax base.
• The General Advocate emphasized that tax assessments should be case-specific.
• OECD guidelines for transfer pricing are designed for direct taxes and may not align with VAT analysis.
• The outcomes of these cases could significantly impact capital groups.

Source: mddp.pl

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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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