Most of this year's production already sold, Lamborghini boss says

Lamborghini said it has almost sold out for the year as an easing pandemic unleashes a free-spending attitude among consumers confined to their homes for months.

The Italian supercar brand is set for “strong growth” in 2021 and has sold about 10 months of its production capacity, chief executive Stephan Winkelmann said in an interview at the Milano Monza Motor Show. The Volkswagen-owned car maker showed off the Huracan STO at an open-air walk close to the global fashion hub’s Duomo cathedral.

The Lamborghini Aventador on display at the MGM Grand Detroit ahead of the 2019 North American International Auto Show. Bloomberg

“Despite a two-month shutdown due to the pandemic, Lamborghini ended 2020 as its second-best year ever,” Mr Winkelmann said, as crowds swarmed the over 60 brands on show including Ferrari, Porsche and McLaren in a sign of normal life resuming in major cities like Milan. Lamborghini deliveries have surged by almost 25 per cent to a record during the first quarter.

While buyers continue to snap up performance cars like the track-suited Aventador, Lamborghini is embarking on the transition towards electrifying its lineup. It is spending a record €1.5 billion ($1.8bn) to offer plug-in hybrid versions of each model by 2024, and plans to launch a first vehicle powered purely by battery during the second half of the decade. Supercar makers like Ferrari and Lamborghini have been slow to embrace EVs with brand histories steeped in powerful engines.

“Lamborghini doesn’t want to be the first-mover at all cost,” said Mr Winkelmann. “In electrification, we need to choose the right moment, when we think the market is ready and we think we can really be the best.”

VW late last year ended deliberations for a possible sale or listing of Lamborghini to better focus on the Audi and Porsche division, its key profit drivers. Mr Winkelmann reiterated the brand wasn’t for sale, following a report last month of VW receiving a €7.5bn offer. There are no current plans to list Lamborghini, he said, which boosted revenue by 5.4 per cent to €509 million during the first quarter.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers