The Court of Justice of the European Union clarifies the impact on VAT of intra-group transfer pricing adjustments

The Court of Justice, in the Stellantis Portugal case, confirms that a transfer pricing adjustment intended to ensure a specific profit margin, even if certain repair or warranty costs are partially taken into account in its calculation, does not necessarily lead to the conclusion that there is an independent supply of services subject to value-added tax. The determining factors are the existence of a legal relationship involving reciprocal consideration and a direct link between the identifiable service and the consideration received.  

Download document

View document