The Italian Revenue Agency has published Ruling No. 884 of 30 December 2021, which clarifies the VAT treatment of transfer pricing adjustments. The ruling concerns an Italian company engaged in the supply of goods (clothing, accessories, and footwear) to subsidiary distributors in the Czech Republic, Germany, Hungary, and the Netherlands. Under the transfer pricing policy, prices are initially determined by applying the comparable uncontrolled price (CUP) method and later confirmed according…