- Transfer pricing and VAT create complexities for multinational groups, with recent EU cases reshaping their interaction.
- EU VAT law lacks an arm’s length principle, but Article 80 allows exceptions for related parties to prevent abuse.
- Transfer pricing adjustments can affect VAT in scenarios like price corrections, separate supplies, and out-of-scope adjustments.
- Recent EU cases highlight the complexity and specific nature of VAT treatment in transfer pricing adjustments.
Source: news.bloombergtax.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.
Latest Posts in "European Union"
- Recent ECJ/General Court VAT Jurisprudence and Implications for EU Compliance (November 2025)
- Navigating VAT Exemptions: Recent ECJ Judgments and Their Implications for Intra-Community Transactions and Imports
- Review of the VAT treatment of Transfer Pricing adjustments
- EU VAT Rate Changes in 2026: Key Updates for Finland, Lithuania, and Germany
- Amazon Phases Out Commingling: New FNSKU Barcodes Reshape Fulfilment and VAT Compliance
