About transfer pricing adjustments, VAT implications and Directive 970/2023
On March 27, 2026, PKF Finconta specialists held a business breakfast dedicated to important tax topics.
Transfer pricing decisions affect not only corporate income tax, but also VAT, reporting and the risk profile before the authorities.
In parallel, Directive (EU) 970/2023 imposes salary transparency standards that transform HR policies into documented and auditable processes.
The event combined technical explanations with practical recommendations for tax, HR and company management departments.
Transfer pricing adjustments
There are three types of adjustments: voluntary, authorities’ and correspondent. Voluntary adjustments, well documented and assumed by taxpayers, can significantly reduce the costs generated by tax audits, offering companies a proactive path to remediation and voluntary compliance.
ANAF monitors signals that may determine or change the tax risk category, such as: recurring losses, profit margins below the industry average, transactions with affiliates in low-tax jurisdictions or on the EU list as non-cooperative, as well as incomplete documentation, and these elements may trigger targeted controls.
Practical recommendations for these aspects regarding the reduction of the tax impact include monitoring profit margins in real time, preparing relevant transfer pricing documentation, as well as all supporting documents: contracts, invoices, timesheets and reports, and last but not least, assessing the opportunity to obtain an Advance Pricing Agreement (APA) for stable transactions, as a risk reduction and compliance assurance measure.
Implementing these measures strengthens the tax risk profile and protects the organization’s reputation in the medium and long term.
“Voluntary adjustments are a proactive compliance tool: they allow companies to correct their tax position before the authorities intervene and, thus, avoid significant costs generated by ANAF adjustments,” said Diana Vlad, Transfer Pricing Manager, PKF Finconta.
VAT implications of transfer pricing adjustments
The VAT test requires clear answers: there is an identifiable supply, there is a consideration and there is a direct link between them. Recent CJEU case law, illustrated by the ARCOMET and Stellantis cases, shows that the VAT treatment of adjustments depends on the economic substance of the operation, not just the name, and the authorities may request additional documents to justify the right to deduction.
Practical recommendations include analyzing each debit or credit note from a VAT perspective, keeping evidence that attests to the direct link between the service and the taxable activity and ensuring consistency at group level.
Applying these measures reduces tax risk and strengthens the company’s position in the face of controls. Complete, coherent and up-to-date documentation, communicated internally and periodically verified, strengthens the defense before the authorities and reduces uncertainty.
“The VAT treatment of adjustments depends on the economic substance of the operation: if there are mutual obligations and a clear economic benefit, the adjustment can be considered a consideration subject to VAT,” concluded Narcisa Chirilă, Tax Partner, PKF Finconta.
Directive 970/2023 and pay transparency
In essence, the directive prohibits absolute confidentiality clauses and guarantees employees the right to receive information on aggregate average pay levels. Companies must link job descriptions to pay scales and apply objective, gender-neutral criteria to demonstrate fairness and avoid discrimination.
The 5% threshold is an important benchmark: unjustified differences above this level trigger joint pay reviews and may lead to mandatory corrective measures.
Practical recommendations include implementing rigorous job evaluation methodologies, clearly documenting pay criteria and preparing GDPR-compliant aggregated reports so that transparency is effective and protected. These measures reduce the risk of litigation and build sustainable employee and stakeholder trust.
“The directive requires companies to transform payroll policies into documented and auditable processes: transparency is not only a legal requirement, but an essential element of the organization’s governance and reputation,” said Olivia Țăpurică, Payroll & Human Capital Manager, PKF Finconta.
In conclusion
The business breakfast organized by PKF Finconta specialists provided a practical framework for understanding the topics regarding transfer pricing adjustments, VAT implications and the new obligations imposed by Directive 970.
The recommendations that emerged from the discussions can be summarized as follows:
- Review TP policies and establish procedures for voluntary adjustments.
- Check the VAT impact before issuing debit/credit notes.
- Implement salary scales and job descriptions correlated with objective criteria.
- Prepare reporting for 2027 (for obligated employers) and ensure data protection.
- Coordinate tax, legal and HR departments for an integrated approach.
The current economic context requires companies to move from reaction to prevention. Solid documentation, transparent processes and internal cooperation are key to reducing tax risk and strengthening internal and external trust.
Florentina Șușnea este Managing Partner în cadrul companiei PKF Finconta. Experiența ei profesională de peste 35 de ani cuprinde domeniile de audit statutar și IFRS, consultanță fiscală, probleme de rezidență fiscală, restructurare financiară și fiscală, documentație și politici de Transfer Pricing, fuziuni și divizări, M&A, expertize judiciare, contabile și fiscale, due diligence de achiziții. Florentina este membru acreditat al următoarelor organizații profesionale: Camera Consultantilor Fiscali, Camera Auditorilor Financiari din România, Camera Expertilor și Contabililor Autorizați din România si Association of Certified Anti-Money Laundering Specialists. A absolvit Facultatea Finanțe-Contabilitate din cadrul Academiei de Studii Economice, București, Facultatea de Drept din cadrul Universității ”Titu Maiorescu”, programul MBA de la Tiffin University din SUA, este doctor în economie și a urmat numeroase cursuri naționale și internaționale în domeniul fiscal. florentina.susnea@pkffinconta.ro
