Advocate General’s Opinion Clarifies VAT Treatment of Transfer Pricing Adjustments in Stellantis Portugal Case

• Advocate General Juliane Kokott issued an Opinion in case C-603/24, Stellantis Portugal, addressing the VAT treatment of transfer pricing adjustments for corporate income tax purposes.
• The case involves whether adjustments to vehicle sale prices within the General Motors Group, documented by credit or debit notes, constitute a “supply of services for consideration” under the VAT Directive.
• Kokott opined that mere price adjustments do not generally qualify as a supply of services for VAT purposes.
• The VAT relevance of profit adjustments depends on their nature and method; only separate, genuine supplies of services for consideration are taxable for VAT.
• The Opinion provides interpretative guidance on the complex interaction between transfer pricing and VAT rules in the EU.

Source: ey.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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