The European Court of Justice (ECJ) ruling on the Arcomet case highlights that transfer pricing adjustments can pose VAT risks. Clear contracts are crucial to mitigate these risks. The case involved the internal cross-border transactions between Arcomet companies in Belgium and Romania, focusing on the VAT implications of retroactive pricing adjustments. The ECJ clarified the conditions under which such adjustments affect VAT, emphasizing the importance of precise contractual agreements to avoid potential tax liabilities. The ruling has significant implications for companies engaged in similar cross-border transactions within the EU.
Source: bakertilly.de
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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