The EU Court ruled that Stellantis’s price adjustments with local dealers are not taxable services, meaning the automaker does not owe VAT on those adjustments. The case involved agreements between Stellantis’s Portuguese unit and dealers that included price adjustments based on dealers’ expenditures to ensure a fixed margin. Portugal’s tax authority had challenged the arrangement.
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LinkedIn · about 1 month ago
The post outlines Portugal’s VAT framework, highlighting the 23% domestic rate, the 0% international regime for services to non‑EU clients, and the reverse‑charge rule within the EU. It also discusses exempt sectors under Article 9, the 6% reduced rate for affordable housing, and the digitised 2026 recovery process for VAT credits.
The Portugal News · about 2 months ago
Portugal has introduced a 6% VAT rate for the construction of homes intended for sale or rent at moderate prices, but the measure is restricted by EU regulations to owner‑occupied homes up to €684,000 and rentals up to €2,300 per month. The new law, published on 6 March 2026, gives the government 180 days to approve the relief, and accompanying decrees also lower income tax for rentals, exempt capital gains on reinvested profits, and impose a 7.5% transfer tax on non‑resident buyers.
Essential Business · 3 months ago
Portugal’s Parliament has approved a 6% VAT rate on new residential housing construction for primary permanent residences, effective 1 January 2026. The measure applies to projects with procedural initiatives between 25 September 2025 and 31 December 2029, and includes conditions on residence duration and penalties for non‑compliance. Self‑build projects and investment contracts for lease also benefit from partial VAT refunds.
Bloomberg Tax · 3 months ago
The article examines how transfer pricing adjustments can trigger VAT when they are considered payment for goods or services, citing the recent Stellantis Portugal Advocate General opinion. It highlights the need for multinationals to conduct structured reviews, document economic rationale, and maintain evidence to mitigate VAT risks, especially in finance and insurance sectors.
Bloomberg Tax · 3 months ago
Bloomberg Tax’s commentary discusses how transfer pricing adjustments can create VAT exposure, citing recent ECJ cases and a Stellantis Portugal Advocate General opinion. It explains that adjustments tied to specific goods or services may be subject to VAT, while purely profit‑based adjustments may not. The article advises multinationals to conduct structured reviews and maintain documentation to mitigate risks.
Bloomberg Tax · 3 months ago
The Advocate General opinion in the Stellantis Portugal case highlights uncertainty over whether transfer pricing adjustments constitute separate supplies of services and thus trigger VAT. The article reviews recent ECJ cases, outlines the need for structured VAT reviews, and stresses the importance of documentation for multinationals, especially those in finance and insurance sectors.
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Key Takeaways
The Court ruled that these adjustments are not services, so Stellantis does not owe VAT on them.
The ruling was issued on 13 May 2026.
Portugal's tax authority challenged the arrangement.
Primary source
Read the full article at Bloomberg TaxThis summary was published on VATfaqs.com on 13 May 2026. It relates to VAT developments in Portugal. The original source is Bloomberg Tax.
