- The ECJ confirmed that transfer pricing adjustments can involve services provided for consideration, impacting VAT.
- Luxembourg VAT authorities have not yet issued guidance on these transactions.
- Proper documentation and communication between VAT and transfer pricing teams are crucial to avoid VAT issues.
- The decision is significant for businesses with limited input VAT deduction rights, like those in finance and real estate.
- Another ECJ case may further clarify VAT and transfer pricing interactions.
Source: insightplus.bakermckenzie.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.
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