Doubts were raised by a company distributing medical devices for in-vitro diagnostics, which, as part of its activities, among others, makes intra-Community acquisitions of goods with a related entity.

The interpretation in question concerned the tax on goods and services with regard to the tax consequences in connection with the receipt of a document correcting the level of profitability,

The request asks for confirmation that the margin adjustment is not subject to VAT.

Director of the National Tax Interpretation in an individual interpretation of 16 October 2019. (ref. 0114-KDIP1-2.4012.510.2019.1.RD) accepted the position of the company. The modification of transfer prices is neutral on the grounds of VAT, as it does not meet the characteristics of an event subject to VAT. The adjustment cannot be classified as a supply of goods, but also as a supply of services – because it is not a mutual activity.

The authority also confirmed the possibility of making the transfer pricing adjustments by means of a summary accounting note. This is a significant facilitation for entrepreneurs who do not have to modify every single invoice or narrow it down to a specific group of goods.


Author: Kamil Czarzasty – tax assistant