ARTICLE · 31 OCTOBER 2025

EU VAT Quarterly Wrap-up –– Q3 2025

Alvarez & Marsal

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In this Q3 2025 edition of our VAT Quarterly Wrap-up, we address three VAT topics which kept the CJEU busy in the third quarter of 2025. Alongside these cases, we selected a number of developments...

NetherlandsTax

Justin Whitehouse

Matthias Luther

Borja Escrivá de Romaní

In this Q3 2025 edition of our VAT Quarterly Wrap-up, we address three VAT topics which kept the CJEU busy in the third quarter of 2025. Alongside these cases, we selected a number of developments relevant for companies active in EU Member States.

Featured CJEU Cases

1.Transfer Pricing Adjustments and VAT – Where Do We Stand Now? (CJEU C-808/23 Högkullen and C-726/23 Arcomet Towercranes)

Held (in essence)

Recent CJEU judgments have clarified the VAT treatment of intra-group transactions.

In Arcomet, the Court held that certain transfer pricing (TP) adjustments, specifically, those made under an existing intercompany arrangement with a fixed calculation mechanism, can qualify as consideration for a taxable supply. Notably, the Court ruled that profit-related or variable payments do not break the direct link for VAT when the contractual mechanism is clear.¹

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