In its eagerly awaited judgment in the Arcomet Towercranes case, the ECJ clarifies when compensation payments, aimed at adjusting profit margins to the arm’s length principle, may constitute remuneration for a taxable supply. The Court’s classification could have implications for many businesses. Multinational groups should review how transfer pricing adjustments currently interact with VAT and whether the judgment gives rise to any need for action. The ECJ’s findings on the uncertain nature of the provision of payment and the need for further evidence to support input VAT deduction are also relevant beyond the context of transfer pricing.

The Federal Government is making a renewed attempt to amend electricity and energy tax law following the failure of the 2024 draft. The amendments to electricity tax law include, among other things, the introduction of clear guidelines for bidirectional charging of electric vehicles, the extension of tax exemption to electricity intended to maintain the ability to generate electricity, and the establishment of a relief rate for taxable persons in the manufacturing sector and in agriculture and forestry for an indefinite period. The law is scheduled to take effect on 1 January 2026.