Italy: Aligning customs valuation, transfer pricing policy

Italy: Aligning customs valuation, transfer pricing

The Italian tax and customs agencies are expected to issue by the end of February 2015, a joint statement of practice addressing the issue of reconciling declared customs values with adjustments based on a transfer pricing policy.

Related content

The purpose will be to align customs and transfer pricing valuation methods.

In Italy, the tax and customs agencies generally have adopted different approaches to valuation. Typically, transfer pricing adjustments have been made retroactively, after the importation of goods. However, Italian customs offices have not formally recognized transfer pricing policies and documentation in determining the customs valuation of imported goods. In fact, the Italian Supreme Court issued a decision holding that, under certain circumstances, a transfer pricing policy cannot be used for customs valuation purposes.

However, due to increased cross-border transactions, the connection between transfer pricing policies and customs valuation appears to be converging, with the tax and customs authorities indicating they intend to address this issue soon.

 

Read a February 2015 report [PDF 256 KB] prepared by the KPMG member firm in Italy: Transfer pricing and customs valuation team up

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

 

Submit

KPMG's new digital platform

KPMG's new digital platform