Last week, the Court of Justice of the European Union delivered its judgment in Stellantis Portugal, Case C-603/24, concerning the VAT treatment of transfer pricing adjustments relating to intra-group supplies of goods. The case concerned a Portuguese vehicle distributor within the General Motors gr
BRUSSELS | 18 MAY 2026
CJEU Issues Judgment on Transfer Pricing Adjustments & VAT in Stellantis Case
Last week, the Court of Justice of the European Union delivered its judgment in Stellantis Portugal, Case C-603/24, concerning the VAT treatment of transfer pricing adjustments relating to intra-group supplies of goods. The case concerned a Portuguese vehicle distributor within the General Motors group which purchased vehicles from affiliated manufacturers and resold them to independent dealers in Portugal. Under the group’s transfer pricing policy, periodic debit and credit adjustments were made to ensure that the distributor achieved a predetermined operating margin. The Portuguese tax authorities argued that the adjustments constituted consideration for services supplied by the distributor to the manufacturers, notably in relation to warranty and repair activities. The referring court asked whether the adjustments fell within the concept of a “supply of services effected for consideration” under the VAT Directive. The Court held that the transfer pricing adjustments did not constitute consideration for a separate supply of services. The CJEU reiterated that a taxable supply requires a direct link between a service and the remuneration received within a legal relationship involving reciprocal obligations. In this case, the contractual arrangements principally concerned the supply and pricing of vehicles and did not establish a separate obligation on the distributor to provide services to the manufacturers. The Court also noted that the adjustments were calculated by reference to multiple cost components and operating expenses, meaning that any connection with repair activities was only indirect. However, the Court did not expressly conclude that the adjustments should instead be treated as modifications to the consideration for the underlying supplies of goods, leaving that assessment to the national court. The judgment is therefore narrower than had been anticipated, and does not establish a broader analytical framework or approach governing the VAT treatment of transfer pricing adjustments in goods transactions. The ruling confirms that the VAT treatment of transfer pricing adjustments remains highly dependent on the contractual framework and the underlying commercial arrangements between the parties.
EU AML Authority Publishes EU-wide Roadshow Report
The EU Anti-Money Laundering Authority has published the findings of its 2025 Roadshow, based on consultations conducted across all 27 EU Member States between March and December 2025. The report summarises discussions with national supervisors, financial intelligence units (FIUs), and private-sector stakeholders, including accountants, lawyers, notaries and other obliged entities, regarding the implementation of the EU’s new AML/CFT framework and the establishment of AMLA as the EU’s central anti-money laundering authority. The report identifies a number of developments expected to have significant implications for the tax advisory profession. AMLA notes that non-financial sectors, including accountancy and legal services, are perceived as having lower levels of AML/CFT maturity than the financial sector, with stakeholders citing uneven awareness of obligations, fragmented supervision and limited operational capacity among smaller firms and sole practitioners. Supervisory authorities and FIUs also expressed concerns regarding low levels of suspicious transaction reporting from non-financial professions, which they viewed as evidence of under-detection and under-reporting rather than lower risk exposure. The report further highlights continuing uncertainty regarding the interaction between AML/CFT obligations and professional secrecy or legal privilege rules applicable to certain legal and advisory professions. AMLA reports that professional bodies and cross-border firms noted that divergent supervisory expectations and inconsistent implementation under the previous directive-based framework had created complexity and duplicative compliance obligations and broadly welcomed the EU AML reform package, including the introduction of a directly applicable Single Rulebook and greater supervisory convergence across Member States. The report indicates that AMLA is accordingly prioritising the development of the technical standards relating to customer due diligence, risk assessment methodologies and supervisory convergence, while also emphasising that proportionality will be an important consideration for smaller non-financial obliged entities. The report also identifies technology, sanctions compliance and information sharing as key operational challenges for obliged entities. Stakeholders highlighted growing risks linked to AI-enabled fraud, crypto-assets, instant payments and sanctions circumvention, alongside increasing compliance pressures arising from GDPR-related restrictions on information sharing. AMLA states that it is working on frameworks to support public-private partnerships and cross-border information exchange under the new AML Regulation, including cooperation with EU data protection authorities. Capacity-building, guidance and training for non-financial sector supervisors will also accordingly form part of AMLA's 2026–2028 work programme.
CFE Webinar "Tax Adviser in the Age of AI" : 9 June 2026
CFE Tax Advisers Europe will host a webinar on 9 June 2026 examining the growing role of artificial intelligence in the tax profession and the practical implications of emerging EU AI regulation for tax advisers. The online event, entitled “Tax Advisor in the Age of AI”, will bring together speakers from the CFE Tax Technology Committee and Professional Affairs Committee to discuss how AI technologies are reshaping advisory work, professional responsibilities and compliance obligations. The webinar will provide an overview of both the opportunities and risks associated with AI tools in tax advisory practice, and the broader transformation of the profession. The webinar will also examine means to manage use of AI in the profession, and the recently publishedCFE Charter of Tax Advisers Rights and Obligations in an AI-Influenced Tax-Advisory Environmentwhichaddresses the responsible use of AI within legal and tax advisory services and the legal obligations arising under the EU AI Act, including transparency requirements where AI tools are used and obligations relating to staff training and risk awareness. The event forms part of CFE’s broader work on digitalisation and the future of the tax profession, and will be the first in a series of digital events examining developments affecting tax advisers. The webinar will take place online on 9 June 2026 at 4:00 PM CEST. Further information regarding registration and participation will be made available on the CFE Tax Advisers Europe website in the coming week.
EU Launches Consultation on Updated ETC Benchmarks for 2026 - 2030 Period
Last week, the European Commission has launched a consultation on updated benchmark values under the EU Emissions Trading System for the 2026–2030 period, which will determine the level of free emissions allowances allocated to industrial sectors. The Commission stated that the revised benchmarks will continue to provide free allocations covering approximately 75% of industrial emissions on average, while maintaining incentives for decarbonisation and industrial electrification. The revised approach, which retains coverage of indirect emissions from electricity use across 14 product benchmarks, is expected to have a financial impact of around €4 billion over the period. Under the EU ETS, companies whose emissions exceed benchmark levels must purchase additional allowances, making the benchmarks a significant factor in determining carbon compliance costs for energy-intensive industries. Free allocation is calculated sector by sector based on the performance of the cleanest 10% of installations, with the revised benchmark values reflecting technological progress and updated emissions data submitted by Member States. The benchmark update complements the Commission’s proposed revision of the ETS Market Stability Reserve and forms part of a broader review of the EU ETS due by July 2026. As part of that review, the Commission intends to introduce sector-specific fallback benchmarks for industries considered most affected by the green transition. The Commission also highlighted the proposed €30 billion ETS investment booster, financed through 400 million ETS allowances, which is intended to support industrial decarbonisation projects and improve access to funding for SMEs.
Commission Publishes Report on Stakeholder Workshop for Simplifying EU Excise Procedures
The European Commission has published a summary report and operational conclusions following a stakeholder workshop held on 23 March 2026 on simplifying EU excise procedures, as part of the Commission’s broader simplification and competitiveness agenda. The report highlights that businesses operating with excise goods continue to face significant compliance burdens due to inconsistent implementation of excise rules across Member States. Stakeholders identified divergent requirements relating to authorisations, guarantees, reporting obligations and the treatment of irregularities during movements of excise goods, as well as fragmentation between excise, customs and VAT procedures. Participants also stressed that current procedures are particularly burdensome for SMEs, low-volume consignments and distance sales. Suggestions included simplified procedures for low-risk transactions, more harmonised interpretation of EU rules, improved guidance and training, and the possible introduction of an excise One-Stop-Shop system similar to the VAT OSS framework. According to the report, stakeholders further called for greater coordination between Member States and more centralised support for businesses operating across borders. The Commission stated that the feedback gathered during the workshop will contribute to its ongoing study on simplifying excise procedures for intra-EU operations and inform further analysis of possible legislative and administrative reforms.
The selection of the remitted material has been prepared by: Dr. Aleksandar Ivanovski & Brodie McIntosh
Fonte: CFE Tax Advisers Europe. Pubblicazione originale del 2026-05-18.