The secret is out, this will most likely not be news to you but there is a strong interplay between Transfer Pricing, Customs and VAT. Even though income tax authorities may have different views in how they consider valuation from a TP perspective and the valuation structure recognized by customs authorities, we can no longer ignore that a company’s TP policy/adjustments will affect their cross-border transactions of tangible goods and ultimately impact their dutiable/VAT position.
During this webinar, we explain your compliance duties in terms of TP adjustments and how you and your company will be impacted from a Customs/VAT perspective. We live in a different world, where authorities have more and faster access to all the information they require. This has led to a significant rise in TP audits over the last years and we have seen that many of our clients struggle in understanding how their TP policy and TP adjustments affect their trade operations, customs valuation and VAT burden. Here, we provide you with some clear guidance on how to navigate these elements to ensure that you meet all of your compliance requirements and are prepared for any unwanted scrutiny from income, VAT or Customs authorities. The latest judgment by the German Supreme Tax Court (VII R 2/19) held that the Community Customs Code does not allow for the reduction of the transactional customs value due to retroactive transfer pricing adjustments. Our experts explore this decision and assess the possible ramifications.
Do not hesitate to reach out to Edward Jacquemyn if you would like to obtain the recording of this webinar.