On 3 April 2024, Advocate General de la Tour (AG) released an opinion in the case of SC Arcomet Towercranes SRL (C-726/23). In short, the A-G clarifies that amounts charged by the Arcomet parent company to its subsidiary, calculated using the OECD's transactional net margin method for transfer pricing, should be considered as payment for services subject to VAT. Additionally, tax authorities can request further documentation to verify the use of services for taxable transactions, provided this is done proportionately. It remains to be seen whether the Court of Justice of the European Union (CJEU) will follow the opinion of the A-G.
SC Arcomet Towercranes SRL (Arcomet Romania), a subsidiary of the global crane rental group Arcomet, is involved in a legal dispute with the Romanian tax authority, Direcţia Generală Regională a Finanţelor Publice Bucureşti. The case centers on the application of VAT rules to intercompany services and the conditions for VAT deduction. Arcomet Romania purchases or leases cranes, which it then sells or rents to its customers. Meanwhile, Arcomet Service NV Belgium (Arcomet Belgium), another entity within the Arcomet group, negotiates with suppliers on behalf of its subsidiaries, including Arcomet Romania, although the actual contracts are signed between Arcomet Romania and the suppliers or customers.
