Transfer Pricing after Stellantis: The Fine Line Between Transfer Pricing Adjustment and Service Fee Recharacterization

This article examines the ECJ’s judgment in Stellantis and its implications for the VAT treatment of year-end transfer pricing adjustments. It explains how the decision fits with SC Arcomet and Högkullen and highlights the importance of aligning intercompany agreements, transfer pricing documentation and actual conduct to avoid the recharacterization of genuine price adjustments as service fees.