Trade between own companies

[Sabinchen]

Hello,

 

I have a Dutch BV in Netherlands and a sole proprietorship in Germany. I trade online with both companies via shops and marketplaces. I would like to sell goods from my German company to my Dutch company. Is this allowed? If so, what rules apply, especially regarding price. I am concerned that the tax office could see the sales as profit shifting.

 

Best regards

 

Sabine Abter

[Joost Rietveld]

Hi Sabine

 

Between (related) companies the "at arms length" principle applies, meaning you have to charge commercial prices as if both companies weren't related. Otherwise you'd be able manipulate profits in either country.

 

See also transfer pricing.