The Italian Revenue Agency issued Answer No. 266/2024, offering guidance on how transfer pricing adjustments for intercompany VAT transactions are to be treated for VAT purposes. The case involves a taxpayer engaged in intra-community purchases in Italy, imports of goods, and the subsequent processing and exportation of the final product to the U.S. by a third-party company within the same group. The taxpayer sought clarification on whether transfer pricing adjustments should affect the determination of the taxable base for the export transactions linked to those adjustments.
The Italian Revenue Agency’s response included the following points:
VAT applicability: The Agency clarified that the total amount of the taxpayer’s second invoice represents the balance of the export transactions. As such, it is subject to VAT considerations, and both invoices in question fall under the non-taxable regime according to Article 8 of the VAT Decree.
Source: agenziaentrate.gov.it