Comments on ECJ case C-603/24: Opinion AG – VAT Implications of Transfer Pricing Adjustments in Car Distribution Cases

• Stellantis Portugal bought cars from General Motors group manufacturers and sold them to independent dealers, who then sold to customers.
• Dealers repaired factory defects and invoiced Stellantis, including VAT; Stellantis then passed these costs (including its own) to the manufacturers, adjusting the car prices accordingly.
• The Portuguese tax authority considered these adjustments as domestic services subject to VAT, leading to additional VAT assessments.
• Stellantis appealed, and the case was referred to the EU Court of Justice.
• Advocate General Kokott concluded that if profit adjustments are made via a variable purchase price for specific goods, it is a reduction of the taxable amount, not a taxable service under the VAT Directive.

Source: futd.nl

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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