- The CJEU in Stellantis Portugal clarified that transfer pricing (TP) adjustments are not automatically VAT consideration for a separate supply.
- A TP adjustment can be treated as consideration only if there is a direct link to a specific supply or contractual reciprocal service obligation.
- Intra-group profit allocation mechanisms for income tax purposes generally do not, by themselves, create VAT-taxable services.
- TP adjustments may still affect the taxable amount of the original goods or services transaction, potentially requiring VAT corrections.
- Multinational groups should review contracts and documentation to determine whether TP adjustments create VAT implications.
Source: dlapiper.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.
Latest Posts in "European Union"
- Agenda of the ECJ/General Court VAT cases – 3 Judgments till June 25, 2026
- EGC VAT Case T-231/26 (Agenzia delle Entrate Direzione Provinciale Genoval) – Questions – VAT deductibility of general expenses for auctioneers under margin scheme
- EGC VAT Case T-232/26 (Appellant_1 Srl ) – Questions – VAT deductibility of general expenses for auctioneers under margin scheme
- CJEU Rules on VAT Treatment of Transfer Pricing Adjustments in Stellantis Portugal Case
- ECG T-96/26 (TellusTax Advisory) – Swedish Referral on Cross-Border Input VAT Deduction and Foreign Exemptions
