Rita Simão Luís, Senior Associate in the Tax Practice Area, is the author of the article “When Transfer Pricing Meets VAT”, recently published in Católica White Files.

In the article, the author analyses the judgment of the Court of Justice of the European Union in the SC Arcomet Towercranes SRL case (C-726/23), delivered in September 2025, which reignited the debate on whether transfer pricing adjustments between related parties may constitute a taxable transaction for VAT purposes.

According to Rita Simão Luís, ‘the increasing complexity of intragroup operations and the overlap between direct and indirect taxation have created challenges for multinational enterprises and, more recently, also for SMEs with holding structures or cross-border operations’. She adds that ‘Arcomet is not just another technical footnote in the archives of European VAT law. It forces us to reconsider the boundary between mere accounting adjustments and genuine supplies of services for VAT’.

• Read this article here.