- Advocate General delivered opinion on case C 726/23 regarding Transfer Pricing adjustments and VAT impact
- TP adjustments’ VAT applicability should be assessed case-by-case
- Not all TP adjustments meet VAT Directive requirements
- Must examine if a supply is made for consideration with a legal relationship and direct link
- In Arcomet case, AG suggests TP adjustment should be subject to VAT
- AG opinion is not binding, but companies should prepare for potential CJEU decision
- First time CJEU analyzes TP adjustments and VAT implications
- Important for large groups and tax administrations
- Recommended to review intercompany agreements and analyze TP adjustments for VAT scope
- Consider revisiting local tax authorities’ positions and potential voluntary disclosure
Source: alvarezandmarsal.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
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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