- Advocate General Kokott at the CJEU opines that transfer pricing corrections in the Stellantis Portugal case should be treated for VAT purposes as upward or downward adjustments to the original sale prices of earlier transactions.
- Stellantis PT, as part of an international group, makes quarterly transfer pricing corrections with manufacturers to ensure a fixed profit margin, based on actual costs and revenues.
- The Portuguese tax authority argued that part of these corrections related to repair costs should be treated as payment for repair services, subject to Portuguese VAT.
- The Advocate General disagrees with the Portuguese tax authority, concluding that the corrections adjust the original sale prices, not payments for separate services.
Source: meijburg.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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