- The Arcomet case involves a Romanian subsidiary and its Belgian parent company in the crane industry.
- The case focuses on transfer pricing adjustments and their impact on VAT.
- The ECJ ruled that transfer pricing adjustments are not neutral for VAT purposes.
- The Romanian subsidiary used management services from the Belgian parent company.
- A profitability arrangement was in place, leading to corrective invoices based on actual margins.
- Traditionally, tax authorities viewed transfer pricing adjustments as not affecting VAT reporting.
- Belgian tax authorities argued for VAT corrective invoices due to transfer pricing adjustments.
- The Advocate General stated that the adjustments should be considered as services subject to VAT.
- The ECJ confirmed the Advocate General’s opinion in its judgment on 4 September 2025.
Source: mddp.pl
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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