The Court of Justice of the European Union (CJEU) has been analysing the connection between the transfer pricing (TP) regime and VAT, recognising that certain intra-group adjustments — traditionally treated only for income tax purposes — may also constitute transactions subject to VAT.
Recent case law has indicated that, whenever there is a legal relationship with an identifiable consideration, even in the context of TP policies, a taxable supply of services for VAT purposes may exist. This development requires a reassessment of intra-group flows and their corresponding tax documentation.
Building on this evolving interpretation, recent and pending cases before the Court of Justice of the European Union (CJEU) provide further clarity on how transfer pricing adjustments can give rise to VAT obligations. These rulings illustrate the practical implications of the Court’s approach and the growing convergence between transfer pricing and VAT.
Continue reading to explore the most relevant cases and the Baker Tilly team’s practical recommendations for navigating this complex area.
Read here the full analysis and Baker Tilly’s key recommendations:
Baker Tilly (España) es un miembro independiente de Baker Tilly International. Baker Tilly International Limited es una sociedad inglesa. Baker Tilly International no presta servicios profesionales a sus clientes.
