- CJEU Focus on VAT and Transfer Pricing: The Court of Justice of the European Union (CJEU) is increasingly examining intra-group settlements, highlighting the interplay between VAT and corporate income tax (CIT) regulations, particularly regarding transfer pricing and the arm’s length principle as per OECD guidelines.
- Key Cases and Implications: Recent CJEU cases, including Weatherford and upcoming decisions on Arcomet and Högkullen, address VAT deductions for services received from related entities and the treatment of remuneration adjustments in intra-group transactions, emphasizing the need for separate analysis of VAT and CIT implications.
- Guidance for Businesses: Companies are encouraged to reassess their intra-group transaction approaches, ensuring compliance with both VAT and CIT regulations, and to seek expert support in documentation, transfer pricing policy development, and representation during tax audits to mitigate risks arising from evolving CJEU rulings.
Source MDDP
Click on the logo to visit the website
Latest Posts in "European Union"
- Comments on ECJ Case C-639/24: Limits on Denying VAT Exemption for Intra-Community Supplies
- European Parliament Analysis: The Role of the Reverse Charge Mechanism in Tackling VAT Fraud
- Mathez Formation: VAT news: the CJEU puts economic reality back at the centre of the game (Feb 6)
- Blog: Navigating Indirect Rebates: A Call for Clarity in VAT Regulations Under ViDA
- Briefing document & Podcast: ECJ C-462/16 – Boehringer Ingelheim Pharma GmbH & Co. KG – Discounts reduce the VAT value of pharmaceutical supplies
