The European Court of Justice (ECJ) ruled in the case C-726/23 (Arcomet) that transfer pricing adjustments should be analyzed individually, considering the nature of services, documentation, and the parties’ intentions. Depending on the analysis, such adjustments may be subject to VAT. The case involved Arcomet Romania and Arcomet Belgium, where adjustments were made based on operational margins. The Romanian court asked the ECJ whether the invoiced amount constituted payment for a service subject to VAT and if tax authorities could request additional documents beyond the invoice. The ECJ agreed with the Advocate General that the service was subject to VAT and that tax authorities could request additional documents if justified by proportionality.
Source: crido.pl
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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