The Arcomet case (C-726/23) decided by the Court of Justice of the European Union addresses VAT issues related to transfer pricing within corporate groups. The court ruled that amounts invoiced between affiliated companies to align profits, following OECD Transfer Pricing Guidelines, constitute payments for VAT-taxable services if there is a clear exchange between the service provider and recipient. Additionally, tax authorities can require documentation beyond invoices to substantiate VAT deductions, provided it is necessary and reasonable.
Source: ey.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.
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