- The CJEU’s Stellantis Portugal case held that retroactive transfer pricing adjustments made to ensure a distributor’s target margin were not subject to VAT as services, because there was no direct link to any service supplied.
- Although the case concerned EU-to-EU transactions, it has broader significance for customs when similar pricing models are used for imports from outside the EU.
- For customs valuation, imported goods must be declared at a price actually paid or payable at import, which can conflict with year-end margin true-ups based on provisional prices.
- Transfer pricing adjustments can still matter for customs if they are part of a pre-agreed, evidenced, and consistently applied pricing methodology.
- The overall message, reinforced by earlier case law like Mitsui, is that only adjustments directly linked to the imported goods can affect customs value.
Source: mha.co.uk
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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