- The ECJ clarified that transfer pricing (TP) adjustments may only be subject to VAT if there is a direct link between the adjustment and a specific taxable supply.
- In the Stellantis Portugal case, the ECJ found no legal obligation for GMP to provide repair services to OEMs for consideration under the intra-group agreement.
- The Court questioned whether TP adjustments constituted actual consideration for repair services, noting that uncertainty in payment breaks the direct link required for VAT.
- The ECJ concluded that TP adjustments in this context do not automatically trigger VAT unless they are directly linked to a specific supply or service.
Source: kmlz.de
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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