VAT and intragroup transactions

VAT risks and opportunities arising from intra-group transactions should not be underestimated. Operations such as mergers, recharges of costs or transfer pricing adjustments can quickly become particularly complex from a VAT standpoint. Additionally, the implementation of a VAT group should not be taken lightly as it can be complex to handle in practice.
In this course, we will guide you through common issues and pitfalls that arise from transactions occurring within related entities.

By the end of this training, the participants will be able to:

• name the VAT opportunities and risks associated with the implementation of a VAT group;
• determine the relation between VAT and transfer pricing adjustments;
• draw up a list of concrete VAT implications of intra-group transactions, in particular recharge of costs, mergers and transfer of seats;
• identify pros and cons of VAT grouping for their organisation.

The course will focus on specific VAT topics and issues arising between related parties to enable learners to identify the associated risks, opportunities and best practices. This course is not industry-specific. The experts will use practical examples from different industries according to the audience.

1. VAT implications of cross-border transactions between a head-office and a branch

VAT treatment applicable
VAT recovery right's implications
Relevant case law

2. VAT grouping regime: main principles and key points to consider for implementation

What is a VAT group?
What are the conditions to apply for it?
How to apply?
Pros and cons

3. Transfer pricing adjustments and open market value

Transposition of the article 80 of the European VAT Directive into the Luxembourg VAT Law
VAT treatment of transfer pricing adjustments: taxable or out of the scope?
What are the VAT practical consequences of transfer pricing adjustments?

4. Intra-group restructuring

Transfer of an ongoing concern
Transfer of seat
Merger and de-merger

5. Understand the key concepts of undisclosed agent and disclosed agent and their practical implications

What are the differences between an undisclosed agent and a disclosed agent?
What are the VAT implications surrounding these two concepts?

6. Recharge of costs: pitfalls and best practices

Practical implications
Best practices and guidelines

This training is coordinated by Marie-Isabelle Richardin, Partner in charge of VAT for asset management/banks/assurance/PE and RE industries.

Marie-Isabelle Richardin has been with PwC’s VAT practice since 2000. Her role at PwC is to assist operators in the financial services industry with their indirect-taxation strategies to help them comply with indirect-tax obligations. She also gained experience of the international tax world by working 2 years in New York. Marie-Isabelle is a regular speaker at conferences and training sessions on VAT for financial services. She is PwC Luxembourg’s representative in the VAT working groups such as the European Fund and Asset Management Association (EFAMA).

This training will be delivered and animated by our field expert trainers, as identified by Marie-Isabelle.