In the decision dated December 20th (Case C‑529/16), the European Court of Justice (ECJ) has considered  that the customs “Transaction Value” cannot be based on a Transfer Price which is subject to retrospective adjustments. Based upon this criterion, related party transactions which are subject to a year-end adjustment should follow a different customs valuation method other than the TV method.

It should be analysed the possible impact of this decision on the determination of the tax base for VAT purposes.

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