The article reviews recent EU Court of Justice rulings that clarify the VAT treatment of transfer‑pricing adjustments in intragroup transactions. It explains that payments calculated under OECD methods may be treated as VAT‑subjected remuneration for services, while unilateral profit allocations are generally outside VAT scope. The piece also highlights the pending Stellantis Portugal opinion and the need for businesses to document services and support evidence to secure VAT recoverability.
The CJEU held that payments calculated using an OECD transfer‑pricing method and charged by a principal to an operating company may constitute remuneration for services within the scope of VAT, provided there is a contractual arrangement and a direct link between services and remuneration.
The AG stated that TP adjustments that reflect a separate supply of services for consideration fall within VAT scope, whereas unilateral profit adjustments made solely for income allocation between jurisdictions do not.
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The Invoicing Hub · 1 day ago
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Bloomberg Tax · 6 days ago
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LinkedIn Article by Raoul Ramautarsing · 8 days ago
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The Invoicing Hub · 12 days ago
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