- AG Kokott opines that transfer pricing adjustments in the Stellantis case are not payments for separate services but corrections to the original sales prices of vehicles.
- Such adjustments should result in corresponding changes to the VAT base of the initial transactions: downward adjustments reduce, and upward adjustments increase the taxable amount.
- She distinguishes between three types of transfer pricing adjustments: pure profit corrections (no VAT effect), remuneration for intra-group services (subject to VAT), and price corrections to earlier supplies (requiring VAT base adjustment).
- The opinion disagrees with the Portuguese tax authorities, who viewed the adjustments as remuneration for services subject to VAT.
- The guidance clarifies that, in this case, VAT consequences relate only to the original vehicle transactions, not to any separate service provision.
Source: rsm.global
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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