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Comments on ECJ C-726/23 – AG Opinion: TP Adjustments May Impact VAT, Requires Case-by-Case Assessment

  • 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

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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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