- Transfer price adjustments can be subject to VAT if they are considered a supply of services for consideration.
- The ECJ ruled that adjustments to operating profit margins should be treated as taxable services.
- Tax authorities may require additional evidence beyond invoices to confirm service delivery.
- The judgment applies across the European Union and affects transactions with related entities.
- Transfer pricing adjustments are not always VAT neutral and may create VAT obligations.
Source: rsm.global
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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