While domestic domestic regulations on the subject of determining the taxable amount for direct tax purposes between affiliated parties (transfer pricing) refer to the principle of free competition, as far as value-added tax is concerned, Article 1 of Directive 2006/112/EC of November 28, 2006 sanctions the prevalence of the transaction price in the case of affiliated parties as well.

We report an enlightening article on the subject of the relationship between the Transfer Pricing and VAT regulations valid in any country of the Union