CJEU Opinion Clarifies VAT Implications of Transfer Pricing Adjustments in Intragroup Transactions

The CJEU’s Advocate General delivered an opinion in the “Stellantis Portugal” case on the VAT treatment of transfer pricing adjustments in intragroup transactions.
The case highlights that there is no “one-size-fits-all” solution for VAT on transfer pricing adjustments; each case requires individual assessment.
The Advocate General distinguished between scenarios: separate services (taxable), unilateral tax authority adjustments (not relevant for VAT), and contractual price adjustments (case-specific).
The opinion underscores the need for businesses to anticipate VAT implications in intragroup activities and profit adjustments.

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.