- Increased Regulatory Focus: Tax authorities in the EU are increasingly linking transfer pricing adjustments to VAT assessments, raising concerns for businesses about potential retrospective VAT liabilities due to non-compliance with VAT regulations.
- CJEU Case Law Insights: Recent cases, such as Arcomet Tower Crane (C-726/23) and Högkullen AB v. Skatteverket (C-808/23), illustrate the CJEU’s reluctance to clarify the relationship between VAT and transfer pricing, emphasizing the need for careful evaluation of each transaction’s circumstances.
- Proactive Compliance Measures: Companies operating in the EU must review their transfer pricing practices from a VAT perspective to ensure they are not inadvertently treated as taxable supplies, thus mitigating risks of non-compliance and potential penalties.
Source Essentia
See also
Latest Posts in "European Union"
- ECJ VAT C-409/24 to C-411/24 – Judgment – Reduced VAT Rate Excludes Non-Accommodation Ancillary Services
- ECJ C-436/24 (Lyko Operations) – Judgment – Loyalty Points in Customer Reward Schemes Are Not VAT Vouchers
- ECJ C-472/24 (Žaidimų valiuta) – Judgment – VAT Exemption Denied for Virtual Money Transactions
- ECG T-96/26 (TellusTax Advisory) – Questions – VAT deductions in the event of different VAT treatment between Member States
- VIDA Measures applicable from 1 January 2027
