In a most current judgment, the European Court of Justice held in favor of the applicant, namely that adjustments of the transfer prices of motor vehicles between manufacturers and distributors based on the warranty costs and operating costs incurred by the purchaser are not consideration for a supply of services subject to VAT. However, with one caveat: The situation would be different if the parties concluded a service agreement to that effect.
The Supreme Tax Court has held that subsequent adjustments to the sales price of the shares in a subsidiary affect the tax-free income of the year of sale, not of the year of adjustment.
