- The text discusses whether transfer pricing (TP) adjustments can have VAT relevance, especially after the EU Court rulings in Arcomet Towercranes and Stellantis Portugal.
- It notes a structural tension between TP adjustments, which aim to align intra-group transactions with arm’s length value, and VAT, which depends on the parties’ agreed consideration.
- A possible link between the two is found in advance contractual agreements that set initial transfer prices and the rules for periodic adjustments.
- In Stellantis Portugal, the company’s costs were used to adjust transfer prices within the group to match a target operating profit, via credit/debit notes from OEMs.
- The Portuguese tax authority treated the refund from the price reduction as payment for a service, while Advocate General Kokott argued instead that it was simply a price adjustment, not consideration for a service.
Source: eutekne.info
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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