The ECJ ruled that non-transactional profit adjustments charged by a principal company to an operating company are considered services within the scope of VAT. The case involved Arcomet Belgium and Arcomet Romania, where the Romanian tax authorities challenged the VAT treatment of these adjustments. The ECJ confirmed that such charges are payments for services subject to VAT and that member states can impose documentation requirements to support VAT recovery on intragroup services.
Source: deloitte.com
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.
Latest Posts in "European Union"
- Commission Backs Italy’s VAT Derogation Through 2028
- Comments on GC T‑575/24 – AG – Contrary to EU law if services provided to members are regarded as internal acts
- Comments on ECJ C-515/24 (Randstad España) – AG – Introduction of exclusion of VAT deduction of representation expenses by Spain not contrary to EU law
- Briefing Document & Podcast: VAT concepts ”Chain Transactions” & ”Triangulation” explained based on ECJ/CJEU cases
- Comments on ECJ C-744/23: No-Cure-No-Pay Services Are Subject to VAT
