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Transfer pricing adjustments may have significant implications for tax and foreign trade matters.

Companies belonging to multinational groups often make adjustments to their related transactions based on their transfer pricing policies. It is crucial to consider the impact these adjustments may have on VAT.

Traditionally, transfer pricing has been perceived as exclusively related to direct taxes, as the regulations governing it are typically linked to corporate income tax. However, adjustments made to comply with direct tax requirements also modify the taxable base for VAT. The valuation of this base follows the arm's length principle.

Businesses need to consider whether transfer pricing adjustments at the end of the period also affect the VAT declared during the 12 months of the year. (It is important to note that the VAT period is monthly.)