- The CJEU in Stellantis Portugal held that a transfer pricing adjustment is not automatically VATable just because the formula includes service-related costs.
- This is helpful for groups using resale-minus, TNMM, or similar profitability-based methods, since year-end true-ups are not necessarily payments for services.
- The ruling is narrow: the Court only decided the adjustment was not consideration for a separate repair service, and left the broader VAT framework unresolved.
- Businesses should align transfer pricing policies, intercompany contracts, invoices, and VAT reporting to show whether an adjustment is a price change, a service payment, or a profit reallocation outside VAT.
- Overall, the judgment limits overreaching VAT reclassification, but many practical issues remain open.
Source: news.pwc.be
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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