Transfer Pricing and VAT Go Hand in Hand

In its judgment in the Arcomet case, the Court of Justice of the European Union (CJEU) shed light on an area that has previously received less attention: certain transfer pricing adjustments cannot be regarded merely as accounting entries. In many cases, they may qualify as VAT-taxable services. This ruling prompts a reconsideration of how intra-group settlements are treated from a VAT perspective.