VATupdate
VAT news

Share this post on

FacebookXEmailLinkedInWhatsApp
World

VATupdate Newsletter Week 12 2026

3 weeks ago
418 views
17 min read

ART

Some people adore the swirling chaos of Van Gogh. Others find peace in the soft, shimmering reflections of Monet.

VAT people, however? I believe that we gravitate toward Mondriaan. Or maybe even Dalí.

Let me explain why. But first, some highlights from the past week:

  • Belgium Introduces New VAT Provision Account and Payment Rules (May 2026)
  • Italy Uncovers €500M VAT Carousel Fraud Involving 64 Suspects
  • Denmark to Apply 0% VAT on Books and Abolish Coffee & Chocolate Taxes (2026)
  • High-Impact US Supreme Court Ruling Triggers $175 Billion in Tariff Refunds
  • Greece Delays Mandatory B2B E-Invoicing for Large Businesses to March 2026

The thing with art is that it is always subjective. Taste is undiscussable, as the Dutch saying goes. One person sees beauty; another sees a mess; a third politely pretends to see something deep while secretly wondering how much the frame costs.

Until you get to VAT people.

Compliance is not about taste. It’s about rules. Sometimes with a grey area, but there should always be a result. A decision. And whether it’s setting up an ERP system, mapping transactions in the business, or designing a Tax Control Framework, there’s one tool every VAT professional knows intimately: the VAT matrix.

It’s the grand overview of all transactions: who supplies what, to whom, under which conditions, including notes on invoicing, the correct boxes of the VAT Return, and, of course, the tax code that must be used in the system. The closest thing to a rulebook carved in stone tablets (but less biblical and more Excel-based).

But some transactions occur more often than others. Some are more material. Some are so risky that they deserve a visual warning sign. And so, the matrix evolves. Cells are coloured. Rows get shaded. Columns get bold borders. Notes are highlighted in colours that originally had meaning, until one day you look at it and wonder whether your file has been possessed by a well-intentioned but slightly overexcited graphic designer.

Before you know it, your VAT matrix has become a Mondriaan painting. White blocks. Red summaries. Blue exception notes. Yellow warnings. Black lines everywhere.

You didn’t create an Excel sheet.

You created art.

Mondriaan wasn’t just an artist; he was basically an early ERP architect.

And Dalí? He gives us melting clocks, floating objects, impossible perspectives. Which is perfect training for explaining VAT rules to clients: “I know it looks impossible, but technically… it’s allowed.”

And that’s when it hits you: perhaps we VAT people were never drawn to abstract art by coincidence. Perhaps we simply recognise ourselves in the structure, the precision, the geometry, and the surrealism: the quiet chaos that somehow makes perfect sense once you understand the rules behind it.

Or maybe we’re all just one overdue reconciliation away from turning into abstract artists ourselves.

Could be that too.

If you have any comments, questions, or ideas that you want to share with us, please send us an email at [email protected] or leave a comment under the posts of this newsletter on LinkedIn.

To go directly to the region, click below:

 

WORLD

WORLD

WEBINARS / EVENTS

 

AFRICA

CAMEROON

Cameroon’s 2026 Finance Law requires all taxable persons to use mandatory real-time e-invoicing, supported by a central platform and third-party providers, with strict penalties for non-compliance to enhance tax transparency and digitize financial processes.

EGYPT

VAT refunds in Egypt are available for exported goods and services, mistakenly collected tax, tax on business-related vehicles, non-resident suppliers, credit balances over six periods, and foreign visitors with qualifying purchases.

MOROCCO

Non-resident digital service providers to Moroccan consumers must register for VAT, declare and pay it quarterly via an electronic platform starting June 11, 2026, under Decree No. 2-25-862.

Morocco’s 2026 Finance Law introduces expanded tax exemptions for food, health, agriculture, and waste sectors, including full TVA exemptions for certain food items and medical products, along with temporary exemptions for livestock imports.

SOUTH AFRICA

SARS plans to intensify tax collection efforts to address a significant tax gap and bolster government revenue amid economic stagnation and fiscal pressures.

UGANDA

Uganda’s e-invoicing system increased VAT compliance by 150% and reduced inflated input claims by 43%, while also adding around 12,000 new VAT filers. The system’s effectiveness in reducing input VAT fraud may encourage other African countries to adopt similar measures.

 

AMERICAS

BRAZIL

Brazil will implement a 12% export tax on crude oil and a 50% tax on diesel starting March 12, 2026, requiring exporters to follow new guidelines for tax calculation and payment.

UNITED STATES

Sales tax liability can be minimized by separately stating charges for goods, services, and shipping on invoices, as bundling them typically results in the entire amount being taxable.

The US Supreme Court’s ruling against the President’s use of the IEEPA for tariffs has led to a $175 billion refund order for all importers, with the refund process currently paused as the CBP develops new digital systems for claim submissions.

 

ASIA-PACIFIC

ARMENIA

Armenia has developed a centralized e-invoicing and real-time reporting system, mandatory for VAT-registered entities since 2016, positioning itself as a leader in digital tax administration despite initial challenges for SMEs.

AUSTRALIA

The High Court upheld the Full Federal Court’s ruling that excess GST refunds under Division 142 of the GST Act depend on actual pricing conduct rather than assumptions about profitability, confirming Geocon’s entitlement to a refund for overpaid GST.

INDIA

RoDTEP and GST together ensure tax-neutral exports for Indian exporters by refunding most domestic taxes, with GST providing zero-rated treatment for exports and RoDTEP covering non-creditable taxes through product-specific remission rates.

JAPAN

Prime Minister Sanae Takaichi has ruled out any future increase in Japan’s consumption tax and announced plans to implement a refundable tax credit system following a temporary tax cut for food products.

SINGAPORE

Singapore will implement mandatory GST e-invoicing for all registered businesses from 2026 to 2031, starting with new voluntary registrants in 2026 and expanding to existing businesses based on their annual supplies.

 

EUROPE

EUROPEAN COURT OF JUSTICE

In 2026, the ECJ and General Court ruled on several VAT cases, addressing issues such as pro-rata VAT deductions for hospitals, Spain’s VAT deduction exclusions, delayed invoice receipt allowances, technical faults affecting VAT refunds, and the exclusion of non-accommodation ancillary services from reduced VAT rates.

The European Court of Justice determined that loyalty points issued by Lyko Operations do not qualify as vouchers for VAT purposes, as they do not meet the necessary criteria of being accepted as payment or having clear documentation of goods/services.

EUROPEAN UNION

Control over VAT compliance is shifting to real-time, requiring accurate invoice data at the source, automatic reconciliation of reporting, alignment of VAT returns with transmitted transactions, and a validated VAT data layer across multiple countries.

The EU will eliminate customs duty relief for low-value imports starting July 1, 2026, introducing a transitional small parcel fee of EUR 3 per category until July 1, 2028, while monitoring the impact of these changes.

AUSTRIA

Austria is proposing a reduction of VAT on staple foods from 10% to 4.9%, effective July 1, 2026, and is seeking public feedback until April 8, 2026.

BELGIUM

Starting May 1, 2026, Belgium will implement a new VAT provision account system via the MyMinfin platform, requiring a new bank account for VAT payments and limiting refunds to specific amounts while abolishing holiday filing deadlines without penalties for late returns in 2026.

CROATIA

The Croatian Tax Administration is set to implement updates to e-Invoice validators and schemas for the Fiscalization 2.0 system on March 15, 2026, enhancing technical aspects without altering business content, and advises participants to download the updated documentation.

CYPRUS

Starting from 1 September 2026, the supply of buildings and repair services in Cyprus will be subject to VAT if the buildings are sold before their first occupation, as per the amended VAT Law effective from 27 February 2026.

CZECH REPUBLIC

The Czech Supreme Administrative Court determined that a one-time transaction does not qualify as economic activity for VAT registration, which is only necessary for ongoing supply of goods or services.

DENMARK

Denmark is conducting a public consultation on a new e-invoicing format transitioning to Peppol BIS 4, aiming to phase out the OIOUBL format by mid-2029 to align with international standards and simplify e-invoicing for stakeholders.

Denmark will eliminate coffee and chocolate taxes and implement a 0% VAT on books starting July 1, 2026, to simplify the tax system and reduce business burdens.

FINLAND

The Supreme Administrative Court confirmed that VAT exemption for export sales applies in chain transactions involving multiple customers, even when goods are transported on behalf of a second customer, as all conditions for VAT-exempt export sales were met. This ruling clarifies that independent transport arrangements do not affect the eligibility for VAT exemption under Finnish law.

FRANCE

France’s tax authority has issued VAT guidelines for dropshipping and distance sales of imported goods, clarifying obligations for low and high-value consignments, VAT liability based on shipment destination, and the implications for non-EU vendors.

France is recodifying its VAT legislation into a new Code of Taxation of Goods and Services effective September 1, 2026, which reorganizes and clarifies existing rules without substantive changes, requiring businesses to update their systems and documentation by the end of a transition period on December 31, 2027.

The reduced VAT rate of 5.5% applies to corn deliveries regardless of whether they are ultimately used for food or non-food purposes, such as biofuel production, and sellers are not required to verify the buyer’s intended use.

GERMANY

The article examines the complexities and unresolved issues surrounding the VAT triangular transaction rule under § 25b UStG, highlighting recent court rulings that have not favoured taxpayers and the challenges faced by middle entrepreneurs regarding VAT registration in intra-EU trade.

The FG Münster ruling emphasizes that a detailed description of goods or services is crucial for input VAT deduction, as vague terms render invoices invalid and prevent the recipient from claiming input VAT, even if the supplier has paid VAT.

GREECE

Greece has postponed the mandatory implementation of B2B e-invoicing for large businesses to March 2, 2026, allowing a transition period until May 3, 2026, during which companies can use existing systems or free tools from the Tax Authority.

HUNGARY

Hungary has announced a roadmap for mandatory electronic invoicing for most B2B and B2G transactions under the EU’s ViDA directive, with specific deadlines for invoice issuance and reporting requirements to tax authorities.

IRELAND

The EU’s ViDA initiative is advancing digital reporting requirements for e-invoicing, with unresolved issues like the “10-day period,” while Ireland plans a phased implementation for businesses by 2028 and 2029.

ITALY

Amazon EU and four managers may face trial in Italy for allegedly enabling non-EU sellers to evade taxes between 2019 and 2021, despite a prior civil settlement of EUR 527 million with the Italian Revenue Agency.

The Italian Revenue Agency has confirmed that a 10% VAT rate applies to waste transport services, including management and storage, regardless of the final disposal destination, while excluding landfill disposal and incineration without energy recovery.

Italian authorities have uncovered a €500 million VAT carousel fraud involving 64 suspects and international shell companies, leading to the seizure of over €32 million in assets.

Training providers in the EU must navigate varying VAT rules for in-person versus online courses based on whether the service is classified as electronic or educational.

NETHERLANDS

The Dutch Ministry of Finance’s report evaluates the implementation of the EU’s ViDA reforms on e-invoicing and digital VAT reporting, considering two scenarios with a proposed timeline for policy debate, legislation, and potential mandates by 2030 and 2032.

The Supreme Court has ruled that alcoholic drinks sold during theatre intermissions must be taxed separately at 21% VAT, requiring theatres to adjust ticket pricing from a Single Purpose Voucher to a Multi-Purpose Voucher, which could affect cash flow and impact artists and companies.

NORWAY

Norway is advancing its e-invoicing and digital bookkeeping mandates for businesses by one year, requiring e-invoices by January 1, 2027, and digital bookkeeping systems by January 1, 2030, with regulatory amendments and stakeholder reviews to follow.

Norway’s Tax Appeals Board upheld a decision that data-centre services provided to non-resident customers are not a single VAT-exempt supply, clarifying the VAT treatment for such operations.

POLAND

Polish VAT law allows taxpayers to use shortened company names on VAT invoices as long as the parties involved can be clearly identified.

ROMANIA

Romania has updated its pre-filled VAT forms to incorporate a new standard rate of 21% and a reduced rate of 11% effective August 1, 2025, while allowing a transitional 9% rate for certain residential property sales until July 31, 2026, with plans to streamline forms by 2026.

Romania is centralizing VAT refund approvals by transferring authority from local tax offices to county-level administrations to enhance oversight and risk management, while still allowing refunds for low-risk taxpayers without prior inspection.

SLOVAKIA

Starting January 2026, tax authorities will have the power to register groups for VAT ex officio if businesses artificially split their activities to evade VAT obligations, particularly to remain under the EUR 50,000 annual threshold for mandatory registration. This initiative aims to address and prevent circumvention of VAT regulations.

SPAIN

Spain’s National Court has determined that an insurance comparison site qualifies for VAT exemption as it performs essential functions similar to those of an insurance agent.

SWEDEN

The Swedish Tax Court clarified that rentals of anchored storage containers requiring building permits qualify as the letting of immovable property for VAT purposes.

SWITZERLAND

VAT typically accrues upon invoicing, partial payment, or receipt of total remuneration. The Federal Administrative Court ruled that for conditional contracts, VAT can arise at contract conclusion despite uncertain execution. In contrast, for continuing obligations like open-ended leases, VAT accrues only when services are invoiced or provided. For fixed-term contracts with a set fee, VAT may arise at contract conclusion if the total fee is established.

UNITED KINGDOM

The tribunal decision in Charge My Street Ltd v HMRC examined whether public EV charging should be taxed at the reduced 5% VAT rate instead of the standard 20%, potentially affecting charging operators and motorists due to the current disparity with home charging rates.

 

MIDDLE EAST

BAHRAIN

Bahrain’s NBR has revised its VAT guide, stating that VAT deposits on imports are only recoverable if confiscated by Customs Affairs and proper documentation is provided, allowing claims within five years under certain conditions.

JORDAN

Jordan has launched a mandatory national e-invoicing system, JoFotara, which requires real-time validation of all business transactions by the Income and Sales Tax Department, becoming fully operational for all sectors by April 1, 2025.

OMAN

Oman is set to implement the second phase of e-invoicing for selected large taxpayers starting in Q1 2027, requiring them to complete a survey by April 2, 2026, and has launched an online portal for Accredited Service Provider registration.

UNITED ARAB EMIRATES

The UAE Ministry of Finance has announced official e-invoicing guidelines effective February 23, 2026, mandating compliance for large entities starting January 1, 2027, with provisions for voluntary adoption, archiving requirements, and a grace period for intra-VAT group transactions.

 

Latest Posts in "World"

Sponsors:

Pincvision
VAT IT

Advertisements: