05/06/2026
The Court of Justice of the European Union (CJEU) has delivered its judgment in the Stellantis Portugal case (C-603/24), addressing the VAT treatment of transfer pricing adjustments linked to intra-group supplies of goods.
The case concerned a Portuguese vehicle distributor that purchased vehicles from affiliated manufacturers and, under the group’s transfer pricing policy, received periodic debit and credit adjustments to achieve a target operating margin.
A key question before the Court was whether those adjustments could be regarded as consideration for services allegedly provided by the distributor to the manufacturers.
The CJEU concluded that the adjustments did not constitute remuneration for a separate supply of services. Reaffirming established VAT principles, the Court noted that a taxable service requires a direct link between the service provided and the payment received within a legal relationship involving reciprocal obligations.
Importantly, however, the Court stopped short of determining whether the adjustments should instead be treated as changes to the consideration for the underlying supplies of goods, leaving that assessment to the national court.
The judgment therefore provides useful clarification, while also confirming that the VAT treatment of transfer pricing adjustments remains highly dependent on the specific contractual framework and commercial arrangements in place.
At Fortsakis Diakopoulos & Associates Law Firm, we closely monitor developments at EU level and their practical implications for businesses operating across jurisdictions, helping clients stay ahead of an evolving regulatory and tax landscape.
