Advocate General Kokott’s Opinion C‑603/24 clarifies how intra‑group transfer price adjustments interact with VAT. The opinion states that such adjustments are not automatically a separate VAT supply, but may alter the taxable amount under Articles 73 and 90 of the VAT Directive if they reflect a variable purchase price agreed upfront. Only when an actual service for consideration exists is a separate supply considered.
The opinion clarifies that such adjustments are not automatically a separate VAT supply; they only affect the taxable amount if they reflect a variable purchase price agreed upfront.
When the adjustment reflects a variable purchase price agreed upfront, it changes the taxable amount under Articles 73 and 90 of the VAT Directive.
Only if an actual service for consideration exists; otherwise it is not a separate supply.
The Portuguese tax authority is cited as viewing the purchaser as having supplied a service to the seller when the purchase price is adjusted.
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