EU Court Sides with Stellantis in Key VAT Transfer Pricing Case

Stellantis, the owner of Fiat and Chrysler, secured a victory Wednesday at the European Court of Justice, which ruled that the automaker’s price adjustments with local dealers didn’t count as a service, and therefore it didn’t owe value-added tax on those adjustments.

The case centered on whether the agreements between Stellantis’s Portuguese unit and local dealerships, which included price adjustments based on the dealers’ expenditures to ensure a fixed margin, should be seen as services rendered, in which case they would be taxable. Portugal’s tax authority had challenged the arrangement, arguing that Stellantis owed it VAT on those deals.

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