Spain: Transfer pricing adjustments, customs valuation | KPMG | GLOBAL
Share with your friends

Spain: Retroactive transfer pricing adjustments, considerations for customs valuation purposes

Spain: Transfer pricing adjustments, customs valuation

Businesses need to analyse the implications of a Court of Justice of the European Union (CJEU) judgment on their import operations, and consider both transfer pricing and customs effects so as to identify appropriate customs procedures, according to a report prepared by the KPMG member firm in Spain.


Related content

Earlier this year, a CJEU judgment offered clarity about the implications of retroactive transfer pricing adjustments on the customs valuation of goods imported into the European Union. The CJEU concluded that if the initial transfer price can be subject to retroactive adjustments, it cannot be used for customs valuation purposes. Consequently, goods imported by companies applying a transfer price that allows for retroactive adjustments cannot be valued based on the transaction value method. Instead, one of the other customs valuation methods must be used. Read TaxNewsFlash-Transfer Pricing

Therefore, companies conducting retroactive adjustments as a result of the application of transfer pricing policies need to consider: (1) using alternative customs valuation methods (the deductive method being the most likely to apply); and (2) submitting simplified customs declarations that could result in an increased administrative burden.

In light of the CJEU judgment and the provisions of the new Union Customs Code, importers applying retroactive transfer pricing adjustments need to consider filing simplified customs declarations on a regular basis. To do this, they must obtain authorisation from the customs authorities—and this, in turn, will trigger an Authorised Economic Operator (AEO) compliance requirement. Moreover, the transfer pricing policies will have to be aligned with the customs value declared in accordance with the alternative customs valuation method used.


Read a March 2018 report (English) [PDF 687 KB] and (Spanish) [PDF 690 KB] prepared by the KPMG member firm in Spain

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal