- The ECJ ruled in the Arcomet Towercranes case that non-transactional profit adjustments between group companies can be considered payment for services and thus fall within the scope of VAT.
- For VAT to apply to transfer pricing adjustments, there must be a direct link between the payment and a specific supply of goods or services.
- The court outlined that a legal relationship, identifiable services, and direct consideration are required for VAT to be due on such adjustments.
- Transfer pricing adjustments may require VAT adjustments if they can be clearly linked to specific transactions.
- Further clarification on VAT treatment of transfer pricing adjustments is expected from the pending Stellantis Portugal case.
Source: news.bloombergtax.com
More information: HERE
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"
- Agenda of the ECJ/General Court VAT cases – 7 Judgments and 2 Hearings till March 25, 2026
- Comments on T-638/24: Double dip alert – an incorrect invoice can create multiple VAT liabilities
- VAT IOSS Scheme: Intermediary Registration Available from April 2026 for Non-EU Businesses
- Customs and VAT Fraud Cost EU €45 Billion in 2025, Officials Warn
- EPPO Investigates Record 3,600 Customs Fraud Cases in 2025, Damages Reach 67 Billion Euros
