NEWS
We are continuously truing to improve our website and our Newsletter. This week, we bring you a new version of the Newsletter, in which we included summaries of all the items we posted last week. To go to the full article, follow the link below the summary.
Please note that the summaries have been created using AI. The link brings you to the full article, from where you can go to the source document for full information on the topic.
Due to Easter, I had no time to write the weekly introduction. So, it’s up to your own imagination this week to bring VAT alive, using an ordinary thought, something interesting you came across, or a funny remark your colleague made. Let me know your VAT thoughts. Or send me an email with a topic that you want me to discuss.
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
- EU-Australia Free Trade Deal Boosts Exports, Faces Criticism Over Agricultural Quotas and Protections
The March 2026 EU–Australia free trade deal largely removes tariffs and is expected to significantly boost EU exports and economic gains, but it has drawn criticism for limiting access through agricultural quotas and protections for sensitive products.
- Free Peppol Invoice Generator: Create, Customize, and Download Valid UBL Invoices for Testing
Free Peppol Invoice Generator: Create, Customize, and Download Valid UBL Invoices for Testing
- E-invoicing, VAT compliance, fiscalization & technology newsletter week 2026-14
E-invoicing, VAT compliance, fiscalization & technology newsletter week 2026-14
- Master Data: The Critical Foundation for Successful E-Invoicing and Tax Compliance
High-quality, standardized master data is essential for accurate e-invoicing and real-time tax compliance, requiring careful, automated central management to prevent errors from inconsistent or improperly stored tax information.
- WTO Members Extend Moratorium on Digital Customs Duties Until May After Ministerial Deadlock
Twenty-three WTO members extended the moratorium on customs duties for electronic transmissions until May after negotiations stalled at the 14th Ministerial Conference in Cameroon. The moratorium applies to cross-border digital goods such as games, movies, and software. The extension is temporary and will be reviewed at the WTO General Council in early May, while wider WTO reform talks remain unresolved, including due to Brazil blocking a final compromise.
- Deloitte UK Names New CEO; Morgan Lewis Expands Tax Team in New York
Darren Graves was appointed CEO of Deloitte UK succeeding Richard Houston, who will lead Deloitte EMEA, while Morgan Lewis added a three-partner tax team in New York.
- WTO – 14th Ministerial Conference: longstanding moratorium on customs duties on electronic transmissions expires
At the WTO’s 14th Ministerial Conference in March 2026, members did not agree to extend the moratorium on customs duties for electronic transmissions, so it expired on 30 March 2026 and reintroduces uncertainty over duties on digitally delivered goods and services.
- How to Reclaim VAT on Unpaid Invoices: A Guide to Bad Debt Relief for Businesses
Businesses may reclaim VAT on invoices that tax authorities have been paid but the customer has not paid, provided strict local eligibility rules are met. Success depends on timing and full documentation, proof that the debt is truly “bad” (often including writing it off and showing reasonable attempts to recover it) and staying compliant with country-specific procedures. Requirements differ widely by jurisdiction, and weak evidence or poor process can result in rejected claims and compliance risk.
- Peppol in APAC: Country Mandates, Adoption Strategies, and the Future of E-Invoicing
Peppol is expanding across APAC—led by Singapore, Australia, Japan, and Malaysia—through phased mandates and targeted adoption strategies (notably Singapore’s GST InvoiceNow model and Australia/NZ government procurement requirements), as it evolves into a globally standardized e-invoicing infrastructure shaped by local regulations.
- 12 Key Benefits of E-Invoicing Every Business Should Know in 2026
E-invoicing in 2026 streamlines and automates invoice processing to cut costs and errors, speed payments and improve cash flow, strengthen tax compliance and audit readiness, enable international scale, and reduce environmental impact while improving security and transparency.
- OECD Anti‑Corruption and Integrity Outlook 2026: Implications for VAT and Customs Enforcement
The OECD’s Anti‑Corruption and Integrity Outlook 2026 flags VAT fraud and customs‑related corruption as major high‑risk threats to public revenue, driven by cross‑border and digital trade, and urges greater use of AI‑enabled data analytics and preventive, risk‑based enforcement through tighter tax‑customs cooperation.
- Why ignoring tax during ERP migration can be so costly
Ignoring tax requirements during ERP migration can lead to incorrect and inconsistent tax determination and compliance data that are difficult and costly to fix after go-live, causing delays, rework, higher costs, and increased audit and penalty risk as transaction volumes grow.
- Peppol BIS Self-Billing 3.0 March 2026 Hotfix Release Published
Peppol has published the March 2026 hotfix release for Peppol BIS Self-Billing 3.0.
- How Booking.com Accelerated Global E-Invoicing Compliance with Fonoa’s Scalable Solution
Booking.com used Fonoa’s scalable compliance solution to speed global e-invoicing implementation from months to days by centralizing tax data and building a unified cross-functional business case.
- Understanding the Reverse Charge Mechanism: VAT Liability, Compliance, and Key Application Scenarios
The reverse charge mechanism shifts VAT reporting and payment responsibility from the supplier to the recipient, who self-assesses output and input VAT (often netting to zero if fully deductible) to handle cross-border and certain domestic transactions while preventing fraud but requires strict compliance to avoid incorrect VAT claims or refunds.
- Global E‑Invoicing & E‑Reporting Regulatory Update – March 2026
In March 2026, the European Commission launched a consultation to harmonise EU e‑invoicing and e‑reporting rules under ViDA, which will likely shape forthcoming EU‑wide legislation and affect cross‑border businesses and technology providers as Member States prepare for implementation.
- Worldwide VAT, GST and Sales Tax Guide 2026
The “Worldwide VAT, GST and Sales Tax Guide 2026” is an annual reference published as of January 1, 2026, that summarizes VAT/GST/sales tax rules across 153 jurisdictions, covering key compliance and digital-economy topics and including new country coverage plus updated chapters for several others.
- VAT Concepts Explained: Import VAT, customs value & the VAT/customs interface
The briefing explains that import VAT is charged on a country’s customs value (usually the CIF value plus duties/charges) at import, linking VAT to customs rules so that, under the destination principle, imported and domestic goods are taxed neutrally—though errors can create major financial and legal risks for multinationals.
- E–invoicing Developments Tracker
The EY E–invoicing Developments Tracker provides ongoing updates to country e-invoicing requirements, with recent editions adding Israel (and others) and Malawi (plus amendments across multiple countries, including Norway, Spain, Bosnia and Herzegovina, Nigeria, Singapore, and Greece).
- UN Committee Reviews Indirect Tax Challenges: Digital Economy, VAT Fraud, Dispute Resolution, and Regressivity
The UN Tax Committee outlined five workstreams to address indirect tax issues, especially VAT in the digital economy, VAT fraud prevention, cross-border dispute resolution, VAT on financial services, and VAT regressivity—emphasizing digitalisation, refund administration, and the importance of efficient VAT collection for revenue in developing countries.
- WTO Talks in Yaounde Collapse: No Deal on Reform, Agriculture, or E-Commerce Tariff Ban
WTO talks in Yaounde ended without agreement on reform, agriculture, or extending the e-commerce customs-duty moratorium, leaving the digital-tariff window expired while the WTO remains deeply divided and negotiations stalled.
- Automating VAT compliance: Necessity of automation
Automating VAT compliance has become essential due to rising regulatory complexity and global growth, enabling scalable and consistent operations by moving tax teams from manual work to strategic analysis while relying on strong (and continuously improved) data management, targeted rule tuning, co-sourced expertise, and a structured, continuously optimized automation approach.
- VAT compliance for digital services and marketplaces
Digital services and marketplaces must now meet real-time, audit-ready VAT obligations under CTCs and expanding platform-liability rules (e.g., ViDA), integrating VAT determination and collection/remittance into operations while harmonizing varying global VAT and e-invoicing requirements.
- OECD Updates: Emerging trends shaping indirect tax professionals
The OECD highlights how indirect tax is shifting to real-time, data-driven administration—driven by expanding e-invoicing, digital reporting (including B2C/e-commerce compliance) and emerging DCTR toolkits—alongside growing use of AI, while emphasizing the need for expertise, coordination with tax authorities, and strong data readiness.
- E-Invoicing & E-Reporting developments in the news in week 13/2026
Week 13/2026 news on e-invoicing and e-reporting highlighted Spain’s adoption of mandatory B2B e-invoicing effective 1 July 2027 and Belgium’s start of sanctions for B2B e-invoicing from April 2026, alongside updated briefing documents, podcasts, and country profiles on related requirements including e-reporting, e-transport, SAF‑T, and ViDA.
- VAT Concepts Explained: Bad Debt Relief and VAT Credit Notes
VAT Concepts Explained: Bad Debt Relief and VAT Credit Notes
Webinars / Events
- 13th E‑Invoicing Summit (E‑Rechnungs‑Gipfel 2026) (June 22-24, 2026)
The 13th E‑Invoicing Summit (E‑Rechnungs‑Gipfel 2026) will be held in Berlin June 22–24, 2026 to bring experts together to discuss Germany’s mandatory e‑invoicing rules and share practical implementation strategies, starting with a hands‑on “10‑Point Plan” workshop for companies.
- Basware webinar: AI Agents in AP: What’s Working, What’s Not, and How to Maximize Your Returns (April 16)
Basware webinar: AI Agents in AP: What’s Working, What’s Not, and How to Maximize Your Returns (April 16)
- VAT IT webinar: E-Invoicing: What Accounts Payable Teams Need to Know (May 12)
VAT IT webinar: E-Invoicing: What Accounts Payable Teams Need to Know (May 12)
- Basware Live Demo Series: InvoiceAI – See How Intelligent Automation Transforms Your AP Workflow (April 22/23)
Basware’s InvoiceAI live demo webinar (April 22/23) shows how intelligent automation streamlines AP workflows by reducing processing time and manual effort, lowering operational costs, and increasing invoice throughput.
- Sponsored by Fintua: VAT Intelligence: Turning Compliance into Competitive Advantage (April 23)
The “VAT Intelligence: Turning Compliance into Competitive Advantage” webinar (sponsored by Fintua) on April 23, 2026 (10:00–10:45 AM BST) will explain how modern, intelligent VAT compliance technology—guided by tax expertise—can transform compliance into strategic business value like improved cash flow visibility and operational agility.
- RTC Webinar: Real-Time Tax: The Next Wave of Global E-Invoicing (April 16)
The April 16, 2026, RTC webinar will explore how real-time e-invoicing and transaction reporting are expanding globally, compare country implementation differences, and share practical guidance to help international companies prepare for evolving local requirements.
- RTC Webinar: e-Invoicing in the GCC: A Closer Look (April 9)
RTC’s April 9, 2026, webinar will review GCC e-invoicing rollouts and continuous transaction controls, highlighting how businesses must adapt to shifting, standardized, real-time reporting and tax-authority-connected invoice data requirements across the region.
- Comarch User Group 2026 – Together Towards Tomorrow: Innovation Without Boundaries (May 20-21)
Comarch User Group 2026 (May 20–21) in Kraków brings together the global Comarch community to explore future business innovations across five streams, including customer loyalty, telecommunications, and banking, with actionable insights, networking, and a special keynote guest.
- Online workshop – Reality check on the revision of eInvoicing Directive (April 27)
On 27 April 2026 the European Commission will hold an online “reality check” workshop to collect practitioner feedback on the forthcoming revision of the EU eInvoicing Directive for public procurement—aimed at better harmonisation and reduced administrative burdens, with updated rules expected for adoption in Q4 2026.
AFRICA
Benin
- Benin Releases Consolidated 2026 General Tax Code with Amendments from Finance Law
Benin’s Ministry of Economy and Finance published the consolidated 2026 General Tax Code on April 1, incorporating amendments from the 2026 Finance Law.
Chad
- Chad Expands Mandatory Standardised Electronic Invoicing for Public and Institutional Transactions from 2026
Chad’s 2026 Finance Law will require covered public and institutional entities to issue and support standardized electronic invoices (FEN) for covered VATable transactions and public expenditure starting January 1, 2026.
Egypt
- VAT Refund Requests Require Production Equation for Locally Manufactured Exported Goods, Says Egyptian Tax Authority
The Egyptian Tax Authority says VAT refund requests for exported, locally manufactured goods will be rejected unless applicants provide a production equation, with procedures and supporting documents available via its published FAQs.
- Egyptian Tax Authority: VAT Refund Requests, Required Documents, and Processing Timeline
The Egyptian Tax Authority states that VAT refund requests submitted with complete required documents are processed within five working days, while incomplete applications are given ten working days to provide missing documents or the request is rejected, with further details available via the linked FAQs.
- New Tax Rules for Content Creators in Egypt: Income and VAT Requirements Explained
In Egypt, content creators providing visual, audio, or written services must comply with both income tax (under Law 91/2005 or Law 6/2025 for certain small-revenue projects) and VAT (under Law 67/2016), registering with required identity and address/supporting documents.
Gabon
- Gabon Suspends Import Duties and VAT on Essential Foods and Construction Materials for Six Months
Gabon will suspend for six months import duties, VAT, and related charges on specified essential foods and key construction materials to help curb rising living costs, following Presidential Order No. 0004/PR of 13 February 2026.
- Gabon Publishes 2026 Finance Law Introducing Mandatory E-Invoicing for Tax Deductions
Gabon’s newly published 2026 Finance Law (Law No. 041/2025) takes effect from 1 January 2026, requiring mandatory e-invoicing for taxpayers to claim expense deductions for income tax and VAT.
Ghana
- Ghana integrates Fiscal Electronic Devices into VAT return filing under Act 1151
Ghana integrates Fiscal Electronic Devices into VAT return filing under Act 1151
- Ghana Requires Real-Time VAT Reporting via Fiscal Electronic Devices Under New Tax Law
Ghana’s Value Added Tax Act, 2025 requires VAT returns to be generated from real-time point-of-sale data captured by Fiscal Electronic Devices integrated with the Certified Invoicing System, alongside updated VAT registration thresholds and a reduced VAT rate.
- Certified Invoicing System (E-VAT): Guidelines, Legal Framework, Implementation, and Compliance Requirements
The Certified Invoicing System (E-VAT) outlines the objectives, legal basis, taxpayer scope, invoicing requirements, onboarding and exceptional-case procedures, record-keeping and compliance obligations (including penalties), and defines implementation timelines, stakeholder responsibilities, support, and GRA audit access.
Kenya
- MP Amisi Urges Government to Halve VAT on Fuel to Shield Kenyans from Imminent Crisis
MP Amisi Urges Government to Halve VAT on Fuel to Shield Kenyans from Imminent Crisis
- Kenya Tribunal: Asset Management Services Subject to 16% VAT, Not Exempt as Insurance Business
The Kenya Tax Appeals Tribunal held that asset management services are not “insurance business” for VAT exemption purposes and are therefore subject to Kenya’s 16% VAT.
Malawi
- Malawi Approves Tax Reforms in 2026-27 Budget, Doubles VAT Registration Threshold
Malawi’s parliament approved multiple tax bills for the 2026-27 Budget, including doubling the VAT registration threshold to MWK 50 million (about USD 28,800). The measures implement several tax policy changes outlined in the new budget.
- Malawi Releases 2026/27 Budget Policy Statement with Key VAT and Tax Reforms
Malawi’s Ministry of Finance released its 2026/27 Budget Policy Statement on 27 February 2026 proposing VAT and tax reforms including raising the VAT registration threshold to MWK50 million (including for electronic invoicing), extending VAT to foreign-provided digital services, and harmonizing VAT refund claim periods to six months.
Namibia
- Namibia’s 2026/2027 Budget Tabled; E-Invoicing System Announced
Namibia tabled its 2026/2027 Budget in Parliament on 26 February 2026, which proposes introducing an e-invoicing system for VAT-registered persons.
Niger
- Niger Clarifies Acceptable Alternatives to Certified Invoices Under New E-Invoicing Rules
Niger’s DGI has specified that under new e-invoicing rules certified invoices may be replaced by documents such as pre-implementation and exempt-person invoices, foreign supplier invoices, minor expenses (up to XOF100,000), customs paperwork, tax notices, public service payment receipts, and Public Treasury revenue declarations, with substitute document requirements detailed for all other cases.
Nigeria
- Is Commercial Rent Subject to VAT Under Nigeria’s 2025 Tax Act?
Under Nigeria’s 2025 Tax Act, rent for commercial (and all) land or buildings is VAT-exempt because it is treated as payment for an interest in land, with VAT only chargeable where separate taxable services are provided beyond the lease or rental itself.
- Why Exporters Must Still Pay VAT on Local Purchases in Nigeria: Common Misconceptions Explained
In Nigeria, exporters must still pay VAT on local purchases because VAT depends on the nature and place of the supply (not the buyer’s status), with exporters recovering that VAT through input-credit and zero-rated export treatment rather than avoiding VAT at the point of purchase.
South Africa
- South Africa Clarifies Use of Varied Turnover-Based VAT Apportionment Method for Retail Companies
South Africa Clarifies Use of Varied Turnover-Based VAT Apportionment Method for Retail Companies
- South Africa Clarifies VAT Apportionment Rules for Money Transfer Services Using Transaction Count Method
South Africa Clarifies VAT Apportionment Rules for Money Transfer Services Using Transaction Count Method
- South Africa Budget 2026: Higher VAT Threshold and New Crypto Reporting Rules Announced
South Africa’s Budget 2026 raises the mandatory VAT registration threshold from ZAR 1 million to ZAR 2.3 million, reducing compliance burdens for smaller businesses. It also adopts the OECD’s Crypto-Asset Reporting Framework, requiring crypto-asset service providers to collect and report standardized user and transaction data to improve oversight and tax reporting.
- Sanitised VAT Rulings Published: Consideration, Apportionment, Auctioneering Artwork, Student Accommodation
On 31 March 2026, SARS published sanitized VAT rulings covering VAT treatment of consideration and apportionment, auctioneering artwork supplied by non-residents, and supplies of student accommodation.
Swaziland
- Eswatini 2026 Budget: VAT Relief, Zero-Rated Essentials, and Stronger Tax Compliance Measures
Eswatini’s 2026 budget eases cost-of-living pressures through higher VAT-exempt thresholds and zero-rating essential goods while boosting tax collections mainly by strengthening compliance (targeting a large annual VAT gap) rather than raising broad tax rates, with only a modest excise duty increase on alcohol and tobacco.
Tanzania
- Tanzania Sets April 20, 2026, VAT and Digital Service Tax Filing Deadline for Businesses
Tanzania’s tax calendar sets April 20, 2026, as the deadline for VAT return filing and payment for March 2026, and the same date applies to digital service tax (DST) returns.
Uganda
- Proposed VAT Amendments: Higher Threshold and Clarified Taxation for Imported Software
The VAT (Amendment) Bill, 2026 proposes raising Uganda’s VAT threshold from UGX 150 million to UGX 250 million and clarifying how imported software is taxed.
Zambia
- Zambia Approves Three-Month VAT and Excise Duty Suspension on Fuel Imports to Ease Costs
Zambia’s cabinet has approved a three-month, starting April 1, suspension of excise duty and zero-rating of VAT on petrol and diesel imports to help offset rising global fuel costs.
- Zambia Introduces 0% VAT on Fuel Imports to Curb Costs and Stabilize Inflation
Zambia has temporarily introduced 0% VAT on petrol and diesel imports for three months to reduce fuel costs, stabilize inflation, and protect household spending.
- Zambia Launches Permanent Voluntary Disclosure Programme for Unreported Tax Liabilities, Effective January 2026
Starting 1 January 2026, Zambia will run a permanent Voluntary Disclosure Programme under which taxpayers may declare previously unreported tax liabilities and receive a full penalty waiver, covering several key tax types but excluding VAT and Customs unless the Zambian Revenue Authority grants favourable treatment.
AMERICAS
Bahamas
- Bahamas Introduces VAT Exemptions and Reduced Rates for Food and Essential Goods
The Bahamas has proposed a VAT (Amendment) Bill, 2026, to provide VAT relief on food and essential goods. Basic unprepared food items will be VAT-exempt, while selected essential goods will be taxed at a reduced 5% rate, applicable to both imports and local sales (wholesale and retail), with changes planned to begin April 1 pending approval.
- Retailers Urge Swift VAT Solution as Deadline Looms for Uncooked Food Tax Changes
Super Value’s president says the government should quickly resolve retailers’ VAT exemption concerns for uncooked foods before April 1, as tax returns are due in six weeks and retailers fear costs could spill over into higher prices even though consumers won’t be overcharged during the transition.
Bolivia
- Bolivia Delays SFE B2B and B2C E-Invoicing Rollout for 2024-2026 Waves
Bolivia’s tax authority (SIN) has pushed back the VAT e-invoicing (SFE) adoption timeline, setting the 7th wave for 1 July 2024, the 8th for 1 October 2024, and the 9th–12th waves for 1 October 2026.
- Bolivia Extends E-Invoicing Deadline for Taxpayers in Groups 9–12 to September 30, 2026
Bolivia has extended the e-invoicing compliance deadline for taxpayer groups 9–12 to September 30, 2026, allowing current invoicing systems until October 1, 2026, with e-invoicing required thereafter.
- Bolivia Introduces Online Invoicing Requirement for Internal Transport of Goods
Bolivia’s tax authority (SIN) will require, starting May 4, 2026, that invoices supporting domestically acquired goods moved through border-adjacent inspection points be issued only via designated online invoicing systems and registered in SIN to improve tax control and prevent confiscations.
- Bolivia Extends Electronic Invoicing Implementation Deadline for Certain Taxpayer Groups
Bolivia’s tax authority (SIN) extended the mandatory electronic invoicing start date for taxpayer Groups 9–12 from 1 April 2026 to 1 October 2026, allowing 27,973 taxpayers to keep using their current invoicing methods until the final go-live on 1 October 2026.
Brazil
- Federal Government Nears Deal with States to Lower Diesel Fuel Prices, Says Finance Minister
Finance Minister Dario Durigan says the federal government is close to finalizing an agreement with states aimed at lowering diesel fuel prices.
Canada
- Manitoba Expands RST Exemptions and Mandates Electronic Filing for Businesses by 2028
Manitoba Expands RST Exemptions and Mandates Electronic Filing for Businesses by 2028
- Canada Repeals Digital Services Tax Following US Pressure and Enacts Full Refunds for Tech Firms
Canada repealed its Digital Services Tax after US pressure, requiring the tax authority to fully refund affected tech firms’ payments with interest.
- Manitoba Budget 2026: Expanded RST Exemptions and Mandatory Electronic Filing Announced
Manitoba’s 2026 Budget expands RST exemptions for more grocery items (including ready-to-eat foods and carbonated drinks) and prenatal vitamins effective July 1, 2026, and introduces mandatory electronic filing, payment, and remittance of RST for registered businesses starting January 1, 2028.
Ecuador
- Ecuador Clarifies Application of 0% and Standard VAT Rates on Food Products
Ecuador’s tax authority says the 0% VAT rate on food applies only to items specifically listed in the tax law, while any other food—and food whose natural state is altered through processing beyond minimal treatment—is subject to the standard 15% VAT, requiring taxpayers to correct prior VAT treatment on related imports and local sales.
Mexico
- Mexico Mandates New CFDI Supplement for Gasoline and Diesel Sales Starting April 2026
Mexico Mandates New CFDI Supplement for Gasoline and Diesel Sales Starting April 2026
Peru
- Electronic Invoice in Peru, how does the Electronic Issuance System (SEE) work?
Peru’s SEE works by requiring taxpayers to issue legally valid electronic tax documents (starting with the new XML/UBl 2.1 airline-ticket format under SUNAT and broader CPE adoption) in structured XML with digital signatures, with systems like CPE and SIRE ensuring tax authorities can oversee and record sales and purchases digitally.
United States
- Missouri DOR Exempts Customary Delivery Charges from Sales and Use Tax for Concrete Firms
Missouri DOR Exempts Customary Delivery Charges from Sales and Use Tax for Concrete Firms
- South Dakota Counties May Impose 0.5% Sales Tax to Offset Property Taxes, Pending Voter Approval
South Dakota Counties May Impose 0.5% Sales Tax to Offset Property Taxes, Pending Voter Approval
- South Dakota Exempts Agricultural Soil Amendments from Sales Tax on Bulk Purchases Starting 2026
South Dakota Exempts Agricultural Soil Amendments from Sales Tax on Bulk Purchases Starting…
- South Dakota HB 1245: Municipalities May Impose Temporary Sales Tax for Capital Improvements with Voter Approval
South Dakota HB 1245: Municipalities May Impose Temporary Sales Tax for Capital Improvements with Voter Approval
- South Dakota Diverts Sales Tax Increase to Fund Homeowner Property Tax Relief
South Dakota Diverts Sales Tax Increase to Fund Homeowner Property Tax Relief
- Washington Ends Sales Tax Exemption for Refurbished Data Centres Starting July 2026
Washington will end sales tax exemptions for refurbished data centres in eligible counties starting July 1, 2026, after which the Department of Revenue will stop issuing exemption certificates.
- Washington Repeals Preferential Tax Rate for Warehousing and Reselling Prescription Drugs
Washington will repeal the preferential 0.138% B&O tax rate for warehousing and reselling prescription drugs effective April 3, 2026.
- CBP Updates Court on IEEPA Duty Refunds; Phase 1 Scope & Progress Reported
U.S. CBP told the court it is advancing its CAPE system to process refunds of IEEPA duties, with Phase 1 refined to cover about 63% of affected entries (unliquidated or liquidated within 90 days). Electronic refund enrolment is mandatory, and 78% of affected entries (about US$120 billion in IEEPA duties) have already enrolled, while complex cases such as reconciliation or drawback claims are slated for later phases as CAPE expands.
- New tariffs imposed on pharmaceuticals following Section 232 investigation
President Trump’s Section 232 proclamation imposes phased (up to 100%) new duties on certain patented pharmaceuticals and ingredients starting July 31, 2026, with specific exemptions and incentives, amid claims of national security risks from U.S. import reliance.
- Horry County Considers 1% Sales Tax to Lower Property Taxes, Shift Burden to Tourists
Horry County is considering a proposed 1% county-wide sales tax (with voter approval needed in November 2026) that would raise about $120–130 million per year to cut property taxes. The plan would primarily fund property tax relief while also shifting some costs to tourists, and it would require further ordinance drafting and council readings before any vote.
- Alabama Bill Proposes Excluding Credit Card Fees from Sales and Use Tax Calculations
Alabama’s 2026 SB 221 would exclude credit/debit card processing (“swipe” or convenience) fees from the sales and use tax taxable base so tax would apply only to the underlying price of goods and services.
- How Are States Adapting Sales Tax Rules for AI and SaaS Services?
States are updating or stretching existing sales-tax rules to determine whether AI—especially subscription chatbot offerings—should be treated like taxable SaaS or exempt internet-access services, but the rapid rise and complexity of these offerings are leaving many jurisdictions with unresolved ambiguity.
- Missouri Sales Tax: Rates, Nexus, Exemptions, Filing, and Compliance Guide for Businesses
Missouri generally has a 4.225% statewide sales tax plus variable local taxes, and sales/use tax applies to tangible personal property and some services, with collection required when a business has physical or economic nexus. Economic nexus applies to remote sellers with more than $100,000 in annual sales, and there are exemptions for certain products/services and qualifying entities that require exemption certificates, with filing completed electronically or by paper using Missouri forms.
- Montana Sales Tax Explained: Rates, Exemptions, and Compliance for Businesses in 2026
Montana does not impose a general statewide sales tax; instead, a 4% tax applies to certain items like accommodations, campgrounds, and rental vehicles, with no local sales taxes allowed. Businesses must determine taxability, remember that shipping charges aren’t taxable, and for sales tax payments of $50,000+ use electronic filing through the Montana TransAction Portal (some point-of-sale fees like E911 may still apply).
- Missouri Senate Considers Replacing State Income Tax with Expanded Sales Tax on Goods and Services
The Missouri Senate is considering a constitutional amendment to gradually eliminate the state income tax by expanding and broadening the sales tax to cover more goods and services, including certain services and motor fuel.
- California Counties Consider Sales Tax Hikes to Save Health Clinics Amid Funding Cuts
California counties including Los Angeles and parts of the Bay Area are proposing or passing temporary sales tax increases to raise about $1 billion annually to keep health clinics operating as state and federal funding cuts threaten care for uninsured and low-income residents, despite concerns that the taxes are regressive.
- Tax Foundation Tracked Every Trump Tariff Change for a Year. Here’s What We Found.
The Tax Foundation review, using data one year after Trump’s “reciprocal” tariff changes, finds whether the anticipated benefits of more investment, higher revenue, reduced debt, and lower prices occurred.
- Sin Taxes Explained: How Cannabis and Other Vices Are Taxed and Why It Matters
Sin taxes are higher-than-usual excise taxes on “vices” like cannabis, alcohol, and tobacco designed both to raise government revenue and discourage consumption—though they can also be regressive and hit lower-income people harder.
- Key Differences Between U.S. Sales Tax and European VAT for Foreign Companies Selling in the U.S.
Unlike Europe’s multi-stage, recoverable VAT system, the U.S. generally applies destination-based sales tax only at the final consumer sale with rates varying widely by state/locality, requiring foreign sellers to register with U.S. authorities (and sometimes consider a U.S. entity) as they scale.
ASIA-PACIFIC
Bangladesh
- NBR to Implement Business-Friendly Tax Reforms and Mandatory Online VAT Returns in Next Budget
NBR to Implement Business-Friendly Tax Reforms and Mandatory Online VAT Returns in Next Budget
- VAT Reform Demands and Revenue Priorities Clash at Pre-Budget Talks with Business Leaders
Pre-budget talks for 2026–27 highlighted a clash between the NBR’s push to strengthen VAT compliance and broaden the tax base for revenue gains and business leaders’ demands for VAT and income tax relief to ease costs and support growth.
- NBR Chief: Upscale Restaurants Failing to Provide VAT Invoices, Calls for Cultural Change
NBR chairman Md Abdur Rahman Khan said upscale restaurants and shops in Dhaka often fail to issue VAT invoices, calling for a cultural shift and simpler VAT processes while urging better bookkeeping and transparency, after complaints that VAT officials harass compliant businesses.
Bhutan
- Bhutan’s Shift from Sales Tax to GST: Key Changes, Impacts, and Compliance Explained
Bhutan will replace its fragmented sales tax with a 5% nationwide GST from January 1, 2026, enabling input tax credits and requiring registration for businesses above BTN 5 million turnover to modernize and broaden the tax base—though it may temporarily increase indirect taxes and bring short-term compliance impacts.
Georgia
- Georgia Sets Q2 2026 VAT Deadlines for Non-resident Digital Service Providers
Georgia’s Revenue Service has set Q2 2026 VAT deadlines for non-resident digital service providers, requiring VAT returns by July 20, 2026, and payments by July 31, 2026.
India
- Proposed GST Reforms: ITC Refund for Capital Goods, Edible Oil Sector, and HSN Auto-Population
Proposed GST Reforms: ITC Refund for Capital Goods, Edible Oil Sector, and HSN Auto-Population
- Residential Villa Construction Taxable as Composite Supply with Deemed One-Third Land Valuation under GST
Residential Villa Construction Taxable as Composite Supply with Deemed One-Third Land Valuation…
- CBIC Hosts Outreach in Delhi to Promote Duty Deferment Scheme for Manufacturer Importers and MSMEs
CBIC Hosts Outreach in Delhi to Promote Duty Deferment Scheme for Manufacturer…
- CBIC Removes ₹10 Lakh Cap, Launches Major Reforms for E-Commerce and Courier Exports in 2026
CBIC Removes ₹10 Lakh Cap, Launches Major Reforms for E-Commerce and Courier Exports in 2026
- India Grants Full Customs Exemption on Key Petrochemicals to Counter Supply Disruptions Until June 2026
India Grants Full Customs Exemption on Key Petrochemicals to Counter Supply Disruptions Until…
- Maharashtra Hospitality Industry Urges Rollback of VAT and Liquor License Fee Hikes
Maharashtra Hospitality Industry Urges Rollback of VAT and Liquor License Fee Hikes
- Fake GST Officials Arrested in Bengaluru and Kushinagar for Extorting Traders Using Forged IDs
In Bengaluru and Kushinagar, police arrested impostors posing as GST officials for extorting traders and a truck driver—using forged IDs and staged raids—collecting Rs 5 lakh in Bengaluru and Rs 1.8 lakh in Kushinagar.
- India Slashes Excise Duty on Petrol, Diesel to Shield Consumers Amid Global Oil Price Surge
India cut excise duty on petrol and diesel by Rs 10 per litre (effective late March 2026) to shield consumers from higher global oil prices while adding export duties on diesel and aviation fuel to ensure domestic supply.
- Understanding GST Vouchers: Classification, Tax Implications, and Key Distinctions from Discounts and Services
GST vouchers under GST must be treated based on their substance as consideration for identifiable goods or services (or the supplier), and misclassifying them versus discounts, services, loyalty points, or employee benefits can create significant tax exposure.
- IMF Economist Urges India to Adopt Single GST Rate and Direct Revenue Redistribution to Citizens
Former IMF fiscal chief Vito Tanzi urged India to simplify GST by adopting a single uniform domestic rate and to share GST revenues directly with citizens through equal per-capita digital transfers via Aadhaar-linked accounts.
Japan
- IMF Urges Japan to Gradually Raise Rates, Target Tax Relief to Vulnerable Groups
IMF Urges Japan to Gradually Raise Rates, Target Tax Relief to Vulnerable Groups
Kazakhstan
- Agricultural Cooperatives and Households May Be Exempted from VAT Amid Critical Tax Burden Discussions
Agricultural cooperatives (SPK) and personal subsidiary farms (LPH) may be exempted from VAT as part of efforts to ease critical tax burdens, including making SPK purchases of milk from the population VAT-free and treating purchase statements as tax documents. The State Revenue Committee will refine proposals to simplify administration, as LPHs may need to register as individual entrepreneurs to access loans, and legislative amendments clarifying cooperative members’ status and tax treatment are expected by year-end.
- Deadlines for VAT Credit Notification in E-Invoice System: What Accountants Need to Know
In the e-invoice system (IS ESF), taxpayers must indicate the VAT amount for offset before submitting their VAT return. For Q1 2026, the VAT credit notification must be submitted before filing the Q1 2026 VAT declaration (form 300.00).
- New VAT Offset Feature Added to Kazakhstan’s Electronic Invoice System (IS ESF)
Kazakhstan’s IS ESF electronic invoicing system will add a new VAT offset feature effective January 1, 2026, letting users select invoices individually or in bulk by quarter, edit partial offset amounts, and apply only the eligible VAT portion to be offset.
- VAT Accounting by Different Rates Introduced on State Procurement Portal from April 2026
From April 2026, the state procurement portal will support VAT accounting at different rates by financial year, applying a default 16% rate for 2025 creditor debt carried into 2026 and requiring unit prices to be listed without VAT in mixed 12%/16% contracts, with the final total calculated using 16% while allowing notes on VAT rates and obligations in supplementary agreements.
- Kazakhstan VAT Changes 2026: New 16% Rate, Registration Threshold, Deductions, and Benefits Explained
From Jan 1, 2026, Kazakhstan raises VAT to 16%, lowers the registration threshold to 10,000 MRP, updates VAT crediting (including raising agricultural credit to 80%), expands exemptions and sector-specific non-tax treatment, and shifts VAT to be applied at the purchase date rather than via deferred VAT.
- Kazakhstan to Review VAT Exemptions on Imported Religious Items in 2026
Kazakhstan’s Ministry of Culture has proposed reviewing in 2026 the VAT exemptions for imported religious items to remove the VAT requirement for registered religious organizations, with public feedback open until April 6, 2026.
Malaysia
- Service Tax 2018: Information Technology Services Guide by Royal Malaysian Customs, Updated 2026
The Royal Malaysian Customs’ 2018 Service Tax Guide for Information Technology Services was updated on 26 February 2026 (replacing the 2019 version) to outline IT service providers’ service tax obligations, exemptions and registration requirements, while noting it’s general, subject to change, and requires permission to reproduce.
- Service Tax Policy for Construction Services and Related Contracts Effective 1 July 2025, Malaysia
Effective 1 July 2025 in Malaysia, EPCC ship/platform contracts may be treated as either construction (qualifying for B2B exemption on professional services) or manufacturing (subject to sales tax), installation contracts are taxed only on installation if goods and installation are separately stated but otherwise taxed in full, and construction services are taxed only on services when materials/goods and services are separately invoiced but otherwise taxed on the entire invoice.
- Service Tax Exemptions for Construction Services: Malaysia, Effective 1 July 2025, Key Conditions Outlined
Starting 1 July 2025, Malaysia grants service tax exemptions on specified construction services, fully exempting federal/state governments, temporarily exempting local authorities (1 Jul–30 Sep 2025), extending service-tax-free treatment for certain non-reviewable contracts signed before 1 Jul 2025 (to 30 Jun 2027) with conditions, and exempting specified residential, mixed-development public facilities, religious worship and qualifying B2B consultancy/construction services.
- Malaysia Service Tax on Construction Work: Key Rules, Exemptions, and Updates Effective July 2025
From 1 July 2025, Malaysia imposes a 6% service tax on most construction work (with key exemptions and registration thresholds, including treatment of separately invoiced goods/services and certain government, worship, and qualifying B2B transactions), while purely residential buildings and specified categories remain excluded.
- MCA Urges Phased GST Reintroduction After Global Conflicts, Proposes Lower Initial Rate and Gradual Rollout
MCA has urged a phased reintroduction of GST only after global conflicts ease—starting with a lower 3–4% rate and building groundwork from 2026 toward possible implementation in 2028—while emphasizing GST’s efficiency and transparency over political benchmarks.
New Zealand
- New Zealand’s GST Ranked World’s Best for Efficiency, Simplicity, and Broad Tax Base
New Zealand’s GST is ranked the world’s best consumption tax for its broad base, high efficiency, and simple design, generating revenue with minimal exemptions and administrative burden despite some equity concerns for low-income households.
Pakistan
- Pakistan Proposes Mandatory E-Invoicing Integration for Broad Range of Businesses Under New FBR Guidelines
Pakistan’s FBR has proposed making e-invoicing mandatory for many businesses, requiring real-time digitally signed e-invoices with QR codes and secure data submission for FBR verification and audits.
- Pakistan Permits E-Invoice Amendments or Cancellations Within 72 Hours Under New Tax Rules
Pakistan’s Federal Board of Revenue now allows e-invoice cancellations, deletions, or revisions within 72 hours of issuance for genuine errors, with decisions made by the Inland Revenue Commissioner, as electronic invoicing is phased in nationwide through December 31, 2025.
- FBR Mandates Electronic Sales Tax Invoicing and Integration for Registered Persons, 2026
Starting in 2026, Pakistan’s FBR will require all sales tax registered persons to electronically invoice and integrate their systems with FBR’s platform via FBR-licensed integrators, with invoice changes allowed only within 72 hours unless approved by the relevant Commissioner Inland Revenue.
Philippines
- Philippine Senate Considers Suspending Fuel Taxes Amid High Oil Prices; VAT Exemption for Electricity Proposed
The Philippine Senate is considering a bill to automatically suspend VAT and excise taxes on motor fuels when Dubai crude hits US$80 per barrel, while also proposing a VAT exemption for electricity to help reduce costs amid high oil prices.
- BIR Issues VAT Exemptions for Indigenous Natural Gas and Electricity Under New Regulations
The BIR, through Revenue Regulations No. 2-2026, granted VAT exemptions for sales and purchases of indigenous natural gas, qualifying aggregated gas, and electricity generated from them under RA No. 12120, subject to DOE endorsement and certification and applying only to the indigenous portion of aggregated gas.
- Legarda Proposes Bayanihan 3 Law to Suspend Fuel VAT, Aid Filipinos Amid Oil Crisis
Senator Loren Legarda proposes a Bayanihan 3 Law granting the President special powers to temporarily suspend the 12% VAT on basic food and medical essentials and fund social aid through emergency revenue measures amid the global oil crisis and rising inflation.
Singapore
- Singapore Mandates Phased InvoiceNow Adoption for GST Businesses, Offers Funding Support Through 2031
Singapore’s IRAS will require GST-registered businesses to adopt InvoiceNow for e-invoicing in a turnover-based phased rollout from 2028–2031, with earlier onboarding for new registrants, and provide onboarding funding of up to S$1,000 for SMEs and S$5,000 for larger firms.
- Comprehensive Guide to Country VAT, E-Invoicing, Registration, and Fiscal Compliance Requirements
A comprehensive guide outlining country-specific VAT, e-invoicing, registration, and broader fiscal compliance requirements, including sales processes, cash register obligations, archiving and audit expectations, and associated penalties.
- Singapore POS and Receipt Regulations: No Certification, Flexible Formats, Key Laws Explained
In Singapore, there are no POS certification or hardware requirements, retailers may issue flexible paper or electronic receipts/invoices (including simplified forms), and the main governing rules are the Singapore GST Act and the Consumer Protection Act.
- Singapore POS and VAT Requirements: No Fiscalization, Flexible Receipts, Standard VAT Rules
Singapore allows non-fiscal POS setups with flexible receipt formats (including e-receipts) while requiring VAT to be calculated at the point of sale and reported monthly using standard VAT returns, with purchase records stored but no mandatory Z-reports or tax-authority communication.
- Overview of Invoice Now: Architecture, Scope, Implementation Timeline, and Business Impact
Invoice Now is an initiative described in fiscal-requirements.com that outlines its underlying architecture, the scope of transaction and data submission it covers, a phased implementation timeline, and the expected business impacts from introduction through rollout.
South Korea
- South Korea Introduces Instant Tax Refunds for Cruise Tourists Starting April 2026
South Korea Introduces Instant Tax Refunds for Cruise Tourists Starting April 2026
- South Korea Considers Extending Fuel Tax Adjustment Provision to 2029
South Korea’s National Assembly is considering extending a special 50% adjustment range for fuel tax rates from the end of 2024 to December 31, 2029.
Sri Lanka
- Sri Lanka Delays VAT on Non-Resident E-Services to July 2026 Pending Legal Amendment
Sri Lanka Delays VAT on Non-Resident E-Services to July 2026 Pending Legal Amendment
- Sri Lanka Delays 18% VAT on Non-Resident Digital Service Providers to July 2026
Sri Lanka Delays 18% VAT on Non-Resident Digital Service Providers to July 2026
- Implementation of VAT on Non-resident Digital Services Postponed to July 1, 2026
Implementation of VAT on Non-resident Digital Services Postponed to July 1, 2026
- Sri Lanka has adopted a new format for tax invoices
Sri Lanka has adopted a new format for tax invoices
- Sri Lanka Delays New Standardised VAT Invoice Format to April 2026 for All Businesses
Sri Lanka has postponed the rollout of a new mandatory standardized VAT invoice format for all VAT-registered businesses to 1 April 2026, requiring use of the specified template and recordkeeping for at least five years under Gazette Notification No. 2463/05.
- New VAT Invoice Format Implementation Delayed to July 1, Says Inland Revenue Department
The Inland Revenue Department has postponed the new VAT invoice format implementation to July 1, and plans to issue an amended gazette shortly.
- Inland Revenue Delays New VAT Invoice Format Implementation to July 2026
The Inland Revenue Department has delayed the rollout of the new standardized VAT tax invoice format until July 1, 2026, with a further amendment to the gazette notice to be issued later after prior postponements from January and April 2026.
- Sri Lanka Delays 18% VAT on Foreign Digital Services to April 2026
Sri Lanka has postponed the start of 18% VAT on foreign non-resident digital services to April 1, 2026, pending parliamentary approval, affecting services like streaming, apps, e-books, and e-commerce, and requiring certain foreign providers over LKR 60 million annual turnover to register for VAT.
- Sri Lanka Mandates New Standardized VAT Tax Invoice Format Effective April 1, 2026
Sri Lanka will require a new standardized VAT tax invoice format starting 1 April 2026 to improve VAT compliance, audit transparency, and digital tax readiness (including RAMIS), with specified formatting and data requirements and enhanced retention and request rules.
Taiwan
- Online Sellers Must Register for Tax if Monthly Sales Reach Threshold, Disclose Business Info
Online sellers whose monthly sales exceed the tax registration threshold (NT$100,000 for goods or NT$50,000 for services from 2025) must register for tax and prominently display their business details on their sales pages, with penalties for noncompliance, as emphasized by Taiwan’s Ministry of Finance.
- Taiwan Enforces VAT-Inclusive Pricing and Invoicing, Penalizes Non-Compliant Online Sellers
Taiwan’s Ministry of Finance requires VAT-inclusive pricing and prompt issuance of uniform invoices, penalizing online sellers that charge VAT separately or omit proper invoicing through enforcement actions and tax recovery.
Thailand
- Thailand Tightens Customs Rules, Raising Parcel Import Costs and Protecting Local Businesses
Thailand has revoked duty and VAT exemptions for low-value (under 1,500 baht) imported parcels and now taxes all parcels over one baht, aiming to curb undervalued cheap imports and protect local businesses, which has reduced parcel volumes and increased prices for some goods.
Vietnam
- Vietnam Revises Tax Rules: Small Businesses Get Exemptions, New Declaration Method from 2026
Vietnam will exempt qualifying small business households and individuals (≤500 million VND annual revenue) from both VAT and personal income tax from January 1, 2026, while ending the lump-sum tax method and requiring all to use a new declaration-based tax system with specified rates.
- Proposal to Exempt Environmental, VAT, and Excise Taxes on Fuel Until June 30, 2026
The Ministry of Finance proposes exempting environmental protection, VAT, and excise taxes on gasoline, diesel, and jet fuel from April 16 to June 30, 2026, reducing their applicable tax rates to 0% and exempting them from VAT declaration and payment while allowing input VAT deductions.
- Vietnam Slashes Fuel Taxes to 0% Amid Strait of Hormuz Tensions to Protect Economy
Vietnam temporarily cut VAT and other fuel-related taxes to 0% from March 26 to April 15, 2026, to shield the economy and businesses from supply-price pressures amid Strait of Hormuz tensions, though it is expected to reduce state revenue by about 7.2 trillion VND monthly.
EUROPE
Europe
- Innovate Tax – Global Tax Updates: March 2026 Snippets
March 2026 tax updates report multiple European VAT rate reductions/expansions, UK progress on reduced VAT for certain public EV charging and Argentina’s lower VAT on electricity, alongside advancing global e-invoicing mandates and rollouts in Spain, Norway, and Singapore.
European Union
- Danish Grocers Concerned as Sweden Halves Food VAT, Fearing Cross-Border Shopping Surge
Sweden’s decision to cut food VAT to 6% until late 2027 has Danish grocers worried it will spur cross-border shopping, potentially hurting Danish retailers’ revenue and jobs while Sweden forgoes 37 billion SEK.
- EU Parliament Reconsiders VAT Reverse Charge Amid Fraud Concerns and Digital Reporting Advances
EU Parliament Reconsiders VAT Reverse Charge Amid Fraud Concerns and Digital Reporting Advances
- EU Parliament Proposes 200 Amendments to Modernize VAT and Tax Rules for Financial Sector
EU Parliament Proposes 200 Amendments to Modernize VAT and Tax Rules for Financial Sector
- Commission welcomes selection of Lille as seat for EU Customs Authority
Commission welcomes selection of Lille as seat for EU Customs Authority
- Parcels from outside the EU 5 euros more expensive from November due to extra import duties
From November, parcels from outside the EU will cost €5 more due to new import duties—an end to the €150 exemption plus added national and EU levies intended to curb inbound shipments and fund customs inspections.
- EU Financial Sector Tax Reform: Divided Parliament Debates VAT, IPT, and FTT Amendments
The European Parliament published 224 amendments to an EU financial sector tax reform draft, showing deep divisions over VAT changes and—especially—a proposed Financial Transaction Tax, with some supporting it to raise revenue and limit speculation while others oppose it over fears of reduced market liquidity and investment.
CEN Approves EN 16931‑1:2026, Updating the European eInvoicing Standard for ViDA
CEN has unanimously approved the revised ViDA-aligned European eInvoicing semantic standard EN 16931‑1:2026, updating it to support structured e-invoicing and future automated VAT reporting, with national bodies now beginning domestic publication after the definitive text was released on 18 March 2026.
- European Commission Proposes “EU Inc.”: A Unified Digital Corporate Form to Boost Cross-Border Business
The European Commission proposed “EU Inc.” on March 18, 2026, as an optional, digital-first EU-wide corporate form to simplify and accelerate cross-border business by harmonizing company rules, enabling low-cost registration through a central interface, and reducing legal fragmentation to improve EU competitiveness.
- EU VAT Committee Limits Taxation of Free Social Media Access in Exchange for User Data
The EU VAT Committee ruled that free social media access provided in exchange for user data generally is not a VAT-able barter transaction, limiting member-state attempts to tax platforms like Meta to exceptional, case-specific scenarios.
- EU Launches Consultation to Harmonise E-Invoicing Rules and Boost Digital Single Market Integration
The European Commission has launched a consultation to revise EU e-invoicing rules to improve harmonisation, interoperability, and alignment with the ViDA initiative, reducing cross-border compliance barriers, with feedback due by June 10 and legislative proposals expected in Q4 2026.
- EU reaches agreement on new Customs Code
On March 26, 2026, the EU agreed a historic, ambitious reform of the Customs Union—modernizing and digitizing customs procedures, simplifying trade flows, and introducing new rules for e-commerce.
- Can the EU Reverse Charge Mechanism Effectively Combat MTIC VAT Fraud Beyond 2026?
The EU’s reverse charge mechanism can meaningfully reduce MTIC VAT fraud, but because it is a temporary, targeted measure ending in 2026, its effectiveness must be evaluated, and a broader long-term EU VAT fraud strategy is still required to sustain results beyond 2026.
- EU Registers Citizens’ Initiative Proposing Aviation Tax and VAT Reform to Promote Rail Transport
The European Commission registered a European Citizens’ Initiative urging climate-friendly transport policies by taxing aviation fuel, ending VAT exemptions for aviation, and using proceeds to help fund rail networks, while awaiting the outcome of signature collection before any possible legislative review.
- European Parliament Debates Expanding EPPO and OLAF Access to VAT Data to Fight Fraud
The European Parliament’s ECON Committee backed a proposal to expand EPPO and OLAF access to VAT data to combat intra-Community fraud, while proposing strict limits and safeguards on data use, access logging, and untargeted searches, alongside concerns over resources and administrative burdens.
- European Commission Sets 2026 Tax and Customs Priorities in New Management Plan
The European Commission’s DG TAXUD released its 2026 management plan outlining priorities for simplifying, implementing, and enforcing EU tax and customs policies, including major initiatives on tax simplification, VAT in the Digital Age, e-commerce fraud prevention, and continued advancement of customs digital systems and reforms.
- EU Agrees on Customs Union Reform, Chooses Lille for New EU Customs Authority Headquarters
The EU agreed to the biggest since 1968 reform of the Customs Union—creating a data-driven customs system with a new Customs Data Hub—while designating Lille as the headquarters of the new EU Customs Authority and changing duty/fee rules including removing the €150 exemption and adding new charges for small consignments and e-commerce importers.
- Deloitte Publishes 2026 Intrastat Guide Detailing EU and UK Filing Requirements
Deloitte has published its 2026 Intrastat Guide outlining EU and Northern Ireland Intrastat filing requirements and procedures for tracking intra-EU goods movements above set thresholds.
- Input Tax Deduction and Gratuitous Value Transfers: New BMF Guidelines Effective from 2026
The BMF issued 2026 guidance on how to handle input tax deductions and VAT treatment of gratuitous value transfers when moving between business and non-business use, amending the UStAE (effective 2026, applied to all open cases, with the old practice permissible until 1 Jan 2027).
- Chinese Nationals Charged in Germany for €630,000 Aluminium Foil Anti-Dumping Duty Evasion
Two Chinese nationals in Germany are charged with evading €630,000 in anti-dumping duties on aluminium foil by falsifying tariff and origin details—causing nearly €475,000 in damages, with additional losses of over €156,000 from onward sales via a Myanmar intermediary—potentially leading to prison and fines.
EUROPEAN UNION – ECJ
- New SDEU Ruling May Allow Earlier VAT Deduction Without Waiting for Invoice Receipt
The EU Court ruled that VAT can be deducted in the return period if the taxpayer has the invoice at filing—rather than only when it is received—boosting taxpayer rights and limiting overly formal invoice-receipt requirements.
- Does a Subsidiary Create a Fixed Establishment for VAT? Insights from Dong Yang Electronics Ruling
Does a Subsidiary Create a Fixed Establishment for VAT? Insights from Dong Yang Electronics Ruling
- CJEU’s Titanium Ltd Ruling: Redefining Fixed Establishment for Cross-Border VAT in the EU
CJEU’s Titanium Ltd Ruling: Redefining Fixed Establishment for Cross-Border VAT in the EU
- Comments on T-221/25: EU General Court confirms (former) Belgian VAT treatment of travel outside the EU
The EU General Court confirmed that, under the VAT “standstill provision,” Belgium could historically continue taxing travel agency services for non‑EU travel without needing an explicit national derogation, since the legal framework implicitly preserved the same taxation essence even after later amendments.
- Agenda of the ECJ/General Court VAT cases – 1 Judgment, 2 AG Opinions till April 30, 2026
By April 30, 2026, the agenda lists one General Court VAT judgment (T-233/25 Mokoryte on whether a subcontractor can adjust VAT after claim assignment and insolvency) and two AG opinions (T-397/25 A&P Deco on VAT adjustments for leased immovable property after a business transfer, and T-268/25 Sampension Livsforsikring on a VAT-group ownership requirement).
- EU Courts Reshape Transfer Pricing’s Impact on Indirect Taxes
EU case law (e.g., Arcomet and Tauritus) confirms that transfer-pricing adjustments tied to corporate income tax can also affect VAT and customs outcomes, creating timing and valuation mismatches because indirect taxes follow different valuation principles.
- EU Court Upholds Belgium’s Historic VAT on Non-EU Travel Services Under Standstill Provision
The EU General Court upheld Belgium’s long-standing VAT treatment of travel agency services for non-EU trips under the standstill clause, rejecting TUI’s bid for an exemption refund and indicating no explicit national derogation is needed.
- Loyalty Points Redeemable Only with Subsequent Purchase Are Not VAT Vouchers, EU Court Rules
The CJEU has ruled that loyalty points redeemable only with a later purchase are not VAT vouchers and therefore do not create a supplier obligation to accept them as consideration when issued, clarifying their VAT treatment under EU law.
- Recent ECJ and General Court VAT Jurisprudence and Implications for EU Compliance – March 2026
March 2026 VATupdate.com highlights how new ECJ and General Court decisions continue to recalibrate EU VAT compliance by refining VAT neutrality, the limits of Member State discretion, and the relationship between formal VAT requirements and substantive deduction/refund rights.
- ECJ Rules Customer Loyalty Points Are Not Vouchers Under EU VAT Law
The ECJ held that customer loyalty points are not vouchers for EU VAT purposes, so VAT is accounted only at the final purchase with any points-based discount rather than when points are issued.
- Shell Companies and VAT Credit: EU Ruling Recognizes Right, Recovery Still Blocked in Italy
The EU Court of Justice struck down Italy’s ban on “shell companies” carrying forward VAT credits as unlawful, but Italian recovery of denied credits from prior years remains uncertain and operationally blocked pending coordinating legislation.
EUROPEAN UNION – ViDA
- EU member states disagree on VAT data exchange
EU member states are split over how widely and how to share cross-border VAT data under the EU’s digital tax reforms, with Hungary favouring limited anonymized exchanges and the Netherlands backing broader sharing with strict safeguards, while some foresee centralized EU data hubs that could increase businesses’ digital reporting obligations.
- ViDA: Implementation ”Single EU VAT Registration” in the Member States
The ViDA briefing and podcast outline how EU Member States (Czech Republic, Italy, Lithuania, Malta, the Netherlands, and Spain) are implementing “Single EU VAT Registration.”
- Briefing document & Podcast: ViDA’s Single EU VAT Registration
The ViDA “Single EU VAT Registration” pillar, adopted in 2025, is intended to simplify cross-EU VAT compliance by reducing the need for multiple VAT registrations through expanded OSS and reverse-charge rules plus a new special transfer scheme.
Albania
- Fiscalization and Registration Procedures in Albania: A Comprehensive Guide
The guide explains Albania’s fiscalization system by outlining how businesses register and comply—covering taxpayer, business premises, POD devices, cashiers, software solutions/manufacturers, and digital certificates—along with the related procedures.
- Albania introduces system generated VAT returns and lowers cash transaction limits
Albania is digitizing VAT and tax administration by automatically generating late VAT returns within 24 hours, expanding mandatory electronic communication and business display of tax registration details, and tightening cash payment rules by lowering the B2B cash limit to ALL 100,000 and setting a new B2C limit of ALL 500,000.
- Automated VAT Declaration: Enhancing Accuracy and Efficiency in Tax Administration with New Technology
Automated VAT declaration using fiscalization data and intelligent error-detection systems improves accuracy and efficiency in tax administration by reducing taxpayer burden and minimizing errors compared to manual entry.
Austria
- VAT Classification of Used Car Bought as Rental and Sold by Dealer: BFG Decision 2026
VAT Classification of Used Car Bought as Rental and Sold by Dealer: BFG Decision 2026
- Austria Denies VAT Exemption for Exports with Under-Invoiced Export Documents, Finance Ministry Clarifies
Austria’s Ministry of Finance clarified that VAT exemption for exports is denied when export documents are under-invoiced relative to accounting records. In a case involving undervalued invoices for goods exported to the U.S., the VAT exemption was granted only for the correctly invoiced portion.
- Input Tax Adjustment for Insolvent VAT Groups: Liability of Parent Company under § 16 UStG
When an Austrian VAT group ends due to the insolvency of the controlled company, the parent company must make the input VAT adjustment under § 16(3) UStG for services it previously claimed during the VAT group’s existence (per BFG 22.01.2026, RV/5100567/2023).
- New Guidelines on Cash Register and Receipt Issuance Obligations Effective January 2026
Effective January 2026, a new BMF decree replaces the 2019 rules and updates cash register and receipt-issuance obligations for qualifying public and charitable organizations, with turnover-based thresholds and specific exemptions and simplified cash determination options.
- Change in VAT Liability Rules for Invoicing: New Requirements for Businesses and Consumers 2025
Starting in 2025, VAT tax liability for overcharged invoicing applies only to invoices issued to entrepreneurs (not end consumers), and to avoid liability the issuer must correct the invoice and ensure the recipient gets the correction via cancellation/reissue or a referenced correction note.
- Supreme Administrative Court Overturns Tax Office Ruling on VAT and Corporate Tax for Rental Property
The Supreme Administrative Court annulled a prior ruling favouring K GmbH and overturned decisions denying input VAT deductions, adjusting corporate tax losses, and imposing withholding tax tied to alleged under-market rent for a luxury rental house.
- Austrian Supreme Administrative Court Rejects VAT Refund for UAE Telecom on Roaming Fees, 2017–2018
The Austrian Supreme Administrative Court rejected a UAE telecom’s claim for an Austrian VAT refund on roaming fees for its customers in 2017–2018, upholding the view that roaming entails two distinct services and denying the company’s challenge to the VAT assessments.
- Administrative Court Overturns Reduction of GSBG Allowances for Self-Paying Nursing Home Residents
The Administrative Court annulled an unlawful decision that reduced GSBG subsidies for self-paying nursing home residents (2014–2017), ruling that the treatment of care allowances as “public funds” should not have led to the subsidy cuts.
- VAT Treatment of Fuel Card Contracts and Related Services Under Section 3 UStG
Under § 3 UStG, tank-card fuel contracts and related road-toll charges billed via tank card/EETS providers are treated as chain-transaction supplies when the facts reflect the contract terms and the same goods (fuel/tolls) are delivered.
- VAT Treatment of AMS Grants: Non-Taxable Status and Input Tax Deduction Exclusion from 2027
From the 2027 assessment year, AMS subsidy-related educational services will remain non-taxable for VAT (since subsidies aren’t remuneration), VAT exemptions/regulation won’t apply, and any input tax deduction previously permitted under the 1995 BMF decree will be revoked.
- Assignment of the Moving Supply in Chain Transactions: Ex Works and Triangular Transaction Simplification
The simplification rule for triangular transactions doesn’t apply when the goods are collected by the recipient under an ex-works arrangement, so the first leg is stationary and the second moving, meaning Art. 25(4) UStG’s material requirements aren’t satisfied (VwGH, 22.01.2026, Ra 2025/15/0038).
- No Input VAT Deduction for Non-Commercial Intra-Group Car Rentals under § 12 UStG
Renting cars within a corporate group only for affiliated companies without the “qualified use” features—such as participation in economic activity, commercial ancillary services, defined duration, and mileage—does not count as commercial leasing under § 12 UStG, so input VAT on related acquisition, rental, or operating costs is denied under § 12 Abs. 2 Z 2 lit. b UStG (BFG decision 30.01.2026, RV/3100678/2025).
Belgium
- Belgium Raises VAT Exemption Threshold for Small Businesses to EUR 30,000
Belgium Raises VAT Exemption Threshold for Small Businesses to EUR 30,000
- Belgium Sets May 1, 2026, as Effective Date for VAT Chain Reform Measures
Belgium has set May 1, 2026, as the effective date for its VAT chain reform, including replacing the VAT current account with a VAT provision account and requiring separate MyMinfin requests to obtain outstanding VAT credits.
- Belgium Implements VAT Exemption for Small Businesses and Mandates B2B E-Invoicing from 2026
Belgium will exempt qualifying small businesses from VAT starting January 2025 and, beginning January 2026, require mandatory Peppol-based B2B e-invoicing for Belgian taxpayers with fixed establishments, with specific carve-outs for certain non-residents.
- Belgium Streamlines Breakbulk Declarations and Tariff Quota Applications with New MASP Procedure
Belgium has introduced an immediate MASP procedure that lets importers file breakbulk declarations together with tariff quota applications using specified breakbulk codes, streamlining customs processing for breakbulk goods under tariff contingents (while other goods follow standard procedures).
- NCTS Phase 6 Opt-Out Goes Live April 1, 2026: Key Changes and Technical Impacts
Starting April 1, 2026, Belgium’s NCTS Phase 6 Opt-Out system goes live with no major technical changes, but security codes 1 (ENS) and 3 (ENS & EXS) will no longer be usable in transit declarations, requiring ENS to be closed using PN (IETS007) or combined TSD (IETS115) and referenced with code N355, alongside a new IE117 message to notify passage offices of the ENS MRN.
- Belgian Tax Authority Confirms GKS 2.0 Deadlines: Extended Tolerance Period for Catering Businesses
Belgium’s tax authority confirms GKS 2.0 deadlines stay the same—mandatory use begins January 1, 2026, with a tolerance until March 31, 2026, for catering businesses due to limited certified hardware, while businesses may move to GKS 2.0 early, temporarily use GKS 1.0, or wait after online registration.
- E-invoicing in Belgium: End of the grace period and full enforcement of the mandate now in effect
As of April 1, 2026, Belgium ended the B2B e-invoicing grace period and requires all VAT-registered businesses to fully comply with PEPPOL BIS e-invoicing mandates (except self-billing until June 30, 2026), with penalties up to €5,000 for non-compliance.
Bosnia and Herzegovina
- Bosnia Tax Inspections Reveal Widespread Violations; 23 Businesses Sealed, Fines Exceed BAM 421,000
Bosnia’s tax authorities found widespread noncompliance in 302 sector inspections, sealing 23 businesses and issuing 123 fines totaling BAM 421,500 after identifying issues such as unregistered workers, unauthorized businesses, and failure to use fiscal devices.
- Discounts and Promotions on Fiscal Receipts in the Republic of Srpska: Legal Requirements and Compliance
In the Republic of Srpska, promotions and discounts are generally permitted, but discounts must be reflected in the taxable base and VAT and clearly displayed on fiscal receipts (item-level discounts separately), while upfront price reductions are recorded as new standard prices rather than as receipt discounts.
Bulgaria
- Bulgarian Businesses to Pay Over 5% Less for Electricity Tomorrow, BNEB Data Shows
According to BNEB data, Bulgarian businesses will pay more than 5% less for electricity tomorrow, with the average price dropping to 129.62 euros/MWh from 136.58 euros/MWh today.
Croatia
- Croatia Extends 5% Reduced VAT on Gas and Heating Fuels Until March 2027
Croatia has extended its 5% reduced VAT rate on natural gas, district heating, and wood-based fuels until 31 March 2027 to help keep energy costs affordable and protect living standards.
- Croatia Intensifies Fiscalization Inspections for Easter to Ensure Compliance in Retail and Service Sectors
Croatia will increase fiscalization inspections over Easter to ensure retail and service businesses issue and record compliant fiscal receipts and use properly registered fiscal software, warning firms to avoid penalties by meeting regulatory requirements.
- Croatia Extends 5% VAT Rate on Heating Supplies and Fuels Until March 2027
Croatia has extended the 5% reduced VAT rate on heating supplies and related fuels until March 31, 2027, to help mitigate high energy prices and inflation.
- Difficulties in VAT Form Submission Being Resolved; Users Will Be Notified When Fixed
The VAT form submission issues detected are being addressed, and users will be notified once the problem is fixed, with thanks for their patience.
Cyprus
- Cyprus Implements Temporary VAT Zero Rate on Meat and Fish from April to September 2026
Cyprus Implements Temporary VAT Zero Rate on Meat and Fish from April to September 2026
- Council Amends VAT Law Schedules on Building Supply and Reduced Rate for Residential Property
The Council of Ministers amended Cyprus’ VAT Law by revising VAT applicability for building transfers (Schedule 8) and harmonizing definitions for the reduced VAT rate on residential property (Schedule 5), with both changes effective September 1, 2026.
Czech Republic
- Czech Republic Announces Excise Duty Remission on Mineral Oils
On 2 April 2026, the Czech government announced a time-limited mass remission of excise duty on selected mineral oils—mainly fuels—to reduce the economic and inflationary impact of high fuel prices under specified conditions.
- Draft Amendment to VAT Act Targets Bad Debts, Unpaid Liabilities, and Non-Alcoholic Beverage Tax Rates
The draft EET 2.0 amendment to the Czech VAT Act would adjust VAT corrections for irrecoverable receivables and unpaid liabilities by tightening thresholds and time limits and set a 12% reduced VAT rate for all non-alcoholic beverages served in catering.
Denmark
- Denmark Advances Toward Mandatory E-Invoicing and Structured Digital Reporting by 2029
Denmark plans to make e-invoicing and structured digital reporting the default by 2029, enrolling businesses with registered bookkeeping systems into the NemHandel network unless they opt out. It will move from dual invoice standards to a single Peppol PINT standard and introduce SAF-T 2.0 from 2027 requiring transaction-level data for accounting and VAT.
- Danish Nemhandel Reference Implementation 2.3.0 Released with Peppol Support and Enhanced Security
The Danish Business Authority released Nemhandel Reference Implementation version 2.3.0 on March 26, 2026, adding Peppol support alongside Nemhandel while aligning with the latest CIUS v1.16.0 and Peppol BIS3 security requirements using the AS4 protocol.
Finland
- Finland Clarifies VAT Rules for Meal and Catering Services in Social Welfare Context
Finland’s Tax Administration ruled that meal and catering services provided to welfare housing units are not VAT-exempt as social welfare because the provider’s activities weren’t supervised by a social authority and it wasn’t registered as a social service provider.
- Finland Clarifies VAT Rules for Meal and Catering Services Provided to Welfare Housing Units
Finland’s tax authority ruled that meal and catering services supplied to welfare housing units are taxable for VAT purposes unless the provider is properly registered or supervised as a social service provider.
- Finland Clarifies VAT on Factoring Services and Advances ViDA Digital Tax Reforms
Finland’s Supreme Administrative Court has ruled that all factoring-service fees are fully VAT-liable, while draft legislation for ViDA reforms would amend its VAT rules (including OSS updates and ending call-off stock) effective January 1, 2027, under public consultation until March 31, 2026.
France
- France’s 2026 VAT Reform: Key Changes for Businesses with the New CIBS Code
Starting September 1, 2026, France will replace the VAT rules in the CGI with the new CIBS code—largely preserving VAT substance but changing the legal structure and references (with transitional coexistence of both codes to maintain continuity).
- France Mandates E-Invoicing for All VAT Businesses by 2027 to Boost VAT Compliance
France will require all VAT-registered businesses to send and (depending on size) issue structured e-invoices for domestic B2B transactions via certified platforms or the Public Invoicing Portal starting 1 September 2026 (with SMEs/micro from 1 September 2027), backed by pilots from 2025, e-reporting for other transaction types, and fines for non-compliance.
- Overview of Legal Framework and ISCA Requirements for POS Software and Vending Machines
The document provides an overview of the legal framework and ISCA requirements governing POS software and vending machines, detailing applicable regulations, certification requirements, stakeholder responsibilities, and noting supporting documentation available via a download link.
Germany
- German Union Chief Urges Abolishing Reduced VAT, Higher Taxes on Luxury Goods to Aid Low Earners
German Union Chief Urges Abolishing Reduced VAT, Higher Taxes on Luxury Goods to Aid Low Earners
- Germany to Reduce Air Travel Tax from July 2026 to Boost Aviation Sector
Germany will cut air travel taxes starting July 1, 2026, for short-, medium-, and long-haul flights, reducing rates by up to EUR 11.40 per passenger and bringing them back to pre–May 2024 levels. The change is intended to support the aviation sector and help Germany remain a global hub amid rising costs and competition.
- New Customs Authorization: Tax ID Requirement and Cross-Agency Checks Under Article 24 UCC-IA
The General Customs Directorate has issued guidance requiring customs authorization applicants to submit each relevant person’s Steuer-ID and responsible tax office, followed by cross-checks with tax authorities that consider only serious or repeated economic-activity violations from the past three years.
- VAT Refund Application for International Organizations and Members: Process, Requirements, and Deadlines in Germany
In Germany, international organizations (or their eligible members under legal agreements) can claim VAT refunds on purchases from eligible invoices (over EUR 25) by submitting a written application with required details, original invoices, and payment proof to the BZSt by December 31 of the following year, with processing typically taking 2–6 months and no application fees.
- No Transfer of Business for VAT When Selling Solar Modules to Newly Founded Partnerships
The sale of solar modules by a solar park operator to newly founded limited partnerships (KGs) is not a VAT-relevant transfer of business because the operator continues operating the solar business by feeding electricity into the grid and receiving the electricity-sale revenue.
- Input Tax Deduction and Gratuitous Value Transfers: Changes in Use Between Business and Non-Business Activities
Input tax deduction hinges on how goods/services are allocated between business and private/non-business use—full deduction is allowed for mixed business/private use, but later private use triggers a deemed VAT supply, whereas mixed business/non-economic use requires pro-rata deduction with mandatory splitting of supplies and services.
- 2026 German VAT Guide: Essential Updates and Compliance Insights for Businesses
The 2026 German VAT Guide provides updated guidance on German VAT rules, covering rates, registration, returns, recovery, invoicing, and key topics like reverse charge, call-off stock, Intrastat, EC Sales Lists, and B2C/e-commerce to help businesses remain compliant.
- Germany Proposes New External Audit Regulations to Accelerate and Streamline Tax Audits
Germany has proposed updated “External Audit Regulations” to replace BpO 2000, aiming to modernize, speed up, and streamline risk-based tax audits—including business, payroll tax, and special VAT audits—through clearer procedures and framework agreements between taxpayers and the Federal Central Tax Office.
- Free‑of‑charge cross‑border EU supplies are not VAT‑exempt
The German Ministry of Finance has clarified that free-of-charge cross-border EU goods supplies are not VAT-exempt as intra-Community supplies because the exemption requires a taxable (consideration-based) intra-Community acquisition in the destination Member State.
- Peppol Publishes English Guide for Central Settlement Standards to Boost Cross-Border E-Invoicing
KOSIT, via Peppol, has released an English guide for Germany’s Central Settlement (ZR) processing standards, providing a unified, interoperable framework that standardizes required technical markers to simplify and accelerate cross-border e-invoicing.
- ZUGFeRD 2.5 to Launch May 2026, Adds Gross Invoice Support for Specialized Industries
ZUGFeRD 2.5 launches on May 20, 2026, adding gross-invoice support for specialized sectors like book trade, publishing, and petroleum while remaining fully compliant with the latest EN16931 code lists.
- FeRD Releases Updated Reference Invoices to Simplify ZUGFeRD Adoption for Diverse Business Sectors
FeRD’s CC3 released updated, industry-specific ZUGFeRD reference invoice templates in a dedicated repository to help businesses adopt electronic invoicing more easily across varied sectors and scenarios.
- English Translation of GEBA Format Specification 1.0.1 Released for International Peppol Integration
KoSIT has released an English translation of the GEBA (German Electronic Business Address) format specification v1.0.1, a Peppol-compatible address standard based on the German W-IdNr (ISO/IEC 6523 code 0246) with optional division identifiers for use in SMP/SML registrations and e-invoice endpoints.
- OLG Celle: Public Buyers Must Verify Correct VAT Calculation in Tender Offers
The OLG Celle held that contracting authorities must check that the VAT shown in tender bids is legally calculated under § 56 VgV because an incorrect VAT amount requires mandatory bid exclusion under § 57 VgV, with particular scrutiny where VAT rates differ or exemptions are claimed.
- BMF Clarifies VAT Rules: Partner Risk and Limited Loss Participation in Tax Law Context
A BMF letter dated March 31, 2026, clarifies that § 6a UStG is not applicable in the discussed VAT scenario because even limited loss participation constitutes Mitunternehmerrisiko (including involvement in profits, losses, and silent reserves like goodwill).
- No VAT Liability for Credit Notes on Non-Existent Services, Rules Baden-Württemberg Tax Court
The Baden-Württemberg Fiscal Court held that a recipient who is not acting as an entrepreneur does not owe VAT on a credit note issued for a non-existent service, as no taxable supply occurred and the VAT shown cannot be owed under § 14c(2) UStG (appeal pending before the BFH).
- When Do Family Favors Become Criminal in Cases of VAT Evasion?
The article explains that family members can face criminal liability for VAT evasion when they use “family favours” like placing a relative as a nominal company director to enable concealment, as illustrated by an uncle’s scheme involving his nephew after the uncle’s business failed.
- BMF Clarifies VAT Rules for Employee Use of Company Cars Following 2022 BFH Ruling
The German BMF clarifies that, following a 2022 BFH decision, an employee’s private use of a contractually provided company car is treated as a barter-like taxable VAT transaction with the employee’s work acting as the consideration, requiring only clarifying updates to the VAT Application Decree rather than a fundamental policy change.
- No Transfer of Business for VAT Purposes When Purchaser Immediately Leases to Own GmbH
A VAT-exempt transfer of business does not occur when the buyer purchases a business and immediately leases it to a GmbH he co-owns, since the GmbH is not treated as the acquirer continuing the same activity.
- BFH Confirms VAT Exemption for Sale of Rented Property, Regardless of Buyer’s Rental Continuity
The BFH held that the sale of a rented property can qualify as a VAT-exempt transfer of an entire business or separable part under § 1(1a) UStG even if the buyer does not continue the existing tenancies, because the buyer must take over the leases and can continue renting.
- April 2026 VAT Conversion Rates for Foreign Currencies Published by German Federal Ministry of Finance
The German Federal Ministry of Finance published the April 1, 2026, VAT conversion rates for foreign currencies—based on ECB daily fixings—to convert currencies into euros for VAT calculations (e.g., USD 1.0890, GBP 1.1750, JPY 0.0064) for use in VAT returns after April 2026.
- XRechnung 4.0: Major Overhaul for E-Invoicing in Germany
XRechnung 4.0, Germany’s update to EU standard EN 16931-1:2026 releasing in mid-to-late 2026, overhauls e-invoicing by loosening the “one order–one delivery–one invoice” rule, strengthening B2B capabilities, and revising sector-extension methods to allow XML attachments—though it will demand significant transition effort.
- Mandatory B2B E‑Invoicing from 2025 – Practical FAQ Issued by the Bundessteuerberaterkammer
From 1 January 2025, German businesses must be able to receive EN 16931–compliant e-invoices in structured formats only (e.g., XRechnung, ZUGFeRD ≥ 2.0, not PDFs/scans), with issuance becoming mandatory for certain B2B volumes from 2027, and successful compliance requires GoBD-compliant archiving plus validation and clear inbound/outbound processes to protect input VAT deductibility.
- Input Tax Deduction under § 15 UStG: Key Issues in 25 Exam-Relevant Cases Plus Mini Exam
The text provides a practice-oriented overview of the core issues and exam-relevant case solutions on input tax deduction under § 15 UStG, including a mini-exam on typical deduction problems.
Greece
- Clarifications on Digital Consignment Note Issuance and myDATA Data Transmission for Inventory Movements
Clarifications on Digital Consignment Note Issuance and myDATA Data Transmission for Inventory Movements
- VAT Refund Platform Opens for 121,000 Special Regime Farmers – Applications Until December 15, 2026
The myAADE VAT refund platform is now open for 121,000 special-regime farmers to claim 6% VAT refunds on 2025 invoices via automatic application processing through December 15, 2026, with payments credited to declared IBANs or offset against debts.
- Greece Extends VAT Transition Deadlines for Farmers Exceeding Subsidy Limits Until April 2026
Greece has extended the AADE deadline to 30 April 2026 for certain farmers moving to the standard VAT regime due to delayed subsidy certificates, cancelling or refunding penalties for late filings beyond the EUR 5,000 subsidy limit while requiring compliance with Greek accounting and e-invoicing rules from 1 January 2026.
- VAT Exemption for EU Member States’ Armed Forces under Common Security and Defence Policy
VAT exemption applies from 31 March 2026 to EU member states’ armed forces for activities carried out under the Common Security and Defence Policy, formalized by decision Α.1075/2026 issued by the relevant finance authorities (taxheaven.gr).
- Public Consultation on Fines for Late Withholding Tax and VAT Declarations Without Tax Due
A proposed tax bill provision, effective April 19, 2024, sets a €100 fine for late withholding tax or VAT return submissions by bookkeeping entities even when no tax is due, and amends earlier fines so non-owed amounts are removed, offset, or refunded.
Ireland
- Updated Guide Highlights Key VAT Fraud Risk Indicators and Due Diligence for Businesses
The Irish Tax and Customs Service’s updated guide outlines key VAT fraud risk indicators and recommends businesses perform due diligence to verify suppliers and the authenticity of transactions and goods/services, warning that even accidental involvement can result in denial of VAT deductions, loss of zero-rating, or harsher penalties.
- VAT Modernisation: Implementation of eInvoicing in Ireland
Ireland is rolling out phased eInvoicing and real-time digital VAT reporting to replace retrospective filing, starting with large corporations in November 2028 and expanding to all domestic VAT-registered businesses in July 2030 in line with the EU ViDA initiative, with businesses urged to prepare their processes and data and coordinate with Irish Revenue for support.
Italy
- Cassation Clarifies VAT Deduction in Improper Triangular Transactions for Final Recipient
Cassation Clarifies VAT Deduction in Improper Triangular Transactions for Final Recipient
- Heirs Must Reopen VAT Number if Professional Credits Remain After Death
Heirs Must Reopen VAT Number if Professional Credits Remain After Death
- Fiscal Decree Approved: Key Measures on VAT, Impatriate Regime, Investments, and Tax Exemptions
A fiscal decree effective March 28, 2026, introduces urgent tax and economic measures, updating VAT for barter transactions, clarifying Italy’s impatriate (neo-resident) regime from 2027, expanding participation and investment-related incentives, and adjusting stamp duty rules.
- VAT Obligations of Delegated Professionals in Forced Execution under Article 591-Bis Civil Procedure Code
VAT obligations for professionals delegated in forced execution under Article 591-bis of the Civil Procedure Code remain disputed and unresolved due to disagreement between the tax authority and the absence of specific legal rules, further complicated by related case law.
- VAT Deduction Procedures for Payback Amounts on Medical Devices in Italy: Recent Clarifications
Italian tax authorities clarified that VAT paid as payback under the medical-device regional spending mechanism may be recovered by suppliers as long as they document the regional measures and applicable VAT rates, with paybacks calculated on VAT-inclusive turnover and payable under the reduced (25%) obligation.
- VAT Group and IRES Consolidation: No Offset Allowed Between Group and Consolidated Tax Credits/Debts
Italy’s Revenue Agency ruled that VAT credits held by a VAT Group cannot be offset against (or transferred to) debts or credits of other entities in the same corporate group, including within a separate national tax consolidation regime. A VAT Group is treated as its own tax entity, distinct from its members and from the consolidated tax group. The VAT Group’s annual VAT credit may only be used to request a refund or carry it forward, not for offsetting within the consolidation.
- VAT Territoriality of Services: Mandate Without Representation and Accessory Services for Events in Italy
The Italian Revenue Agency ruled that, under a mandate without representation, non-access (e.g., catering, lodging, ticketing, travel) services procured for a non-EU client for events in Italy are not “accessory” to event entry and must be invoiced to the non-EU client under each service’s specific VAT territoriality rules.
- Formal Revision of VAT Rates and Updated Combined Nomenclature in the New Consolidated Law
The new consolidated VAT law revises VAT rates and updates numerous entries in the combined nomenclature, with the changes set out in the annex to Legislative Decree 10/2026 and taking effect from January 1, 2027.
- VAT Territoriality for Non-Resident Clients: Event Support Services in Italy and Related Tax Implications
The scenario involves determining the correct VAT treatment in Italy for a non-EU, non-resident client for event-support/logistics services (hotel, transport, security, hostesses, and materials) supplied by a company that books suppliers in its own name under a mandate and then re-invoices with a markup, requiring analysis of VAT territoriality beyond standard travel-agency or event-organizer rules.
- Annual VAT Return: Deadlines, Requirements, Exemptions, and Submission for Businesses in 2026
In 2026, VAT-registered businesses must file an electronic annual VAT return covering all VAT-related activities for the prior year (even if no taxable transactions occurred), typically due between February 1 and April 30—so for 2025, by April 30, 2026—showing VAT owed/credited, payments, and any carryover credits. Certain exemptions may allow some taxpayers to avoid filing if they only perform exempt operations or meet other special conditions.
- Amortizable Assets in VAT Form 2026: New Interpretations and Guidelines for Taxpayers
The 2026 VAT model instructions update guidance on VAT refunds for works on third-party property by applying VAT-neutrality and broadly defining “depreciable assets” to include medium-to-long-term business or self-employment investment goods regardless of their legal or income-tax treatment.
- Credit Notes for 2025: Issuance Deadline and VAT Declaration Rules Explained
For 2025, credit notes must be issued by April 30, 2026 (the 2025 VAT return filing deadline), and VAT can be deducted either in the periodic VAT settlement when the credit note is issued or no later than the annual VAT return for 2025, with the specific trigger date depending on the situation (e.g., insolvency deemed fruitless for proceedings started before May 26, 2021).
- Italian Revenue Agency Updates RT Technical Specifications to Version 11.2: Key Changes Explained
The Italian Revenue Agency has updated its RT Technical Specifications to version 11.2, replacing 11.1, introducing new optional meal voucher handling, clearer rules for non-tax-valid documents, updated compliance transmission requirements, expanded telematic recorder use cases, revised minimum Digital Fiscal Seal and DGFE archive/fiscal memory layouts, and associated compliance updates.
- Italy Clarifies VAT Rules, Delays Import Fee, and Amends Tax Laws Effective March 2026
Italy’s Decree-Law No. 38, effective 28 March 2026, clarifies VAT on barter/payment-in-kind only for contracts signed or renewed from 1 January 2026, delays a planned EUR 2 import fee for low-value consignments until 1 July 2026, and amends related tax laws.
- European Delegation Law: First Step Toward Digital Age VAT Reform and Implementation of ViDA Package
The 2025 European Delegation Law authorizes the rollout of the EU’s ViDA VAT-in-the-digital-age reforms—digital, near real-time cross-border VAT reporting, updated platform and e-commerce rules, and expanded one-stop-shop/reverse-charge mechanisms—making electronic invoicing and digital reporting mandatory for intra-EU transactions by July 1, 2030.
- Electronic Invoicing to Public Administration: Rules, Obligations, Split Payment, and Payment Terms Explained
Electronic invoicing to Italy’s Public Administration is mandatory through the SdI system (paper invoices aren’t accepted), governed by Italian laws and technical rules, with obligations such as split payment, CUP code indication, and specific payment terms (typically 30–60 days) applying broadly to VAT taxpayers, alongside a general e-invoicing requirement for residents since 2019.
- Italian Fiscalization System: Tax Audits, Legal Framework, E-commerce VAT, Penalties, and Taxpayer Rights
The Italian fiscalization system governs tax audits and compliance by requiring RT/electronic sales data transmission under specific legal audit procedures, checking fiscalization, e-commerce and VAT obligations, and imposing financial sanctions and potential business suspension while safeguarding taxpayer rights.
- VAT-Inclusive Service Contracts in Registered Deeds Also Subject to Registration Tax, Supreme Court Rules
The Supreme Court ruled that service contracts expressly identifiable within a registered deed are subject to registration tax even when the contract is already subject to VAT, provided the contract and parties match those in the deed.
- VAT Return 2026: Regulatory Instability, Critical Automation, and Lawless Implementation Challenges
The 2026 VAT return model faces major regulatory instability, with automated handling of omitted returns and transitional logistics reporting that raise concerns about credit recognition, procedural definitions, and compatibility with special regimes.
Kosovo
- Government Rejects Opposition’s Call to Cut Oil Taxes Amid Soaring Fuel Prices in Kosovo
Kosovo’s government rejected the opposition’s proposal to cut oil excise duties and abolish VAT despite rising fuel prices, arguing it would strain the state budget, while the opposition said the inaction risks an economic and social crisis.
Lithuania
- Lithuania Cuts VAT to 5% for Robotic Surgical Instruments and Accessories, Effective March 2026
Lithuania will apply a reduced 5% VAT rate from March 2026 to robotic surgical instruments and accessories that meet the manufacturer’s specified limits, lowering costs for healthcare providers investing in advanced medical technology.
- Draft Legislative Proposal Submitted to the Seimas – Implications for VAT Digitalisation
The draft legislative proposal to amend Lithuania’s VAT law updates rules for intra-EU goods movements and strengthens the framework for digital platforms facilitating sales to EU customers by non-EU taxable persons, with most changes effective January 1, 2027, and certain repeals delayed until July 1, 2029.
Luxembourg
- Luxembourg Court Clarifies VAT Deduction for Mixed Holding Companies
The Luxembourg District Court held that mixed holding companies may recover input VAT only where they can clearly prove they supply taxable management services to specific subsidiaries and must factually allocate input VAT, accordingly, based on high evidentiary standards.
Malta
- Malta Narrows VAT Exemption for Gambling: Key Changes Effective 1 October 2026
From 1 October 2026 Malta will narrow the VAT exemption for gambling, likely bringing more gambling supplies under VAT and creating uncertainty over which products remain exempt and how “other forms of gambling” are defined, so operators should model VAT recovery impacts and watch for further guidance.
- Malta Announces VAT and Gaming Tax Reforms to Strengthen Gaming Sector Competitiveness
Malta will introduce VAT and gaming tax reforms starting 1 October 2026. The VAT changes clarify exemptions—particularly for sports betting and some casino products—and tighten place-of-supply rules. The gaming tax will be simplified into a single streamlined, more equitable structure covering both land-based and online operators, organized by game type and how the games are offered. Authorities will issue further guidance to help stakeholders implement the changes and improve regulatory certainty, competitiveness, and fiscal resilience.
- Malta Narrows VAT Exemption for Gambling and Betting Activities Effective 1 October 2026
Malta’s Legal Notice 86 of 2026 narrows the VAT exemption for gambling and betting supplies, effective 1 October 2026, reducing the current exemption scope and potentially enabling operators to recover more input VAT.
- Malta Introduces VAT Exemption for Public Lift Passenger Transport Services
Malta has amended its VAT law to exempt scheduled passenger transport services provided by regulated “public lifts” from VAT by adding them to the VAT Act’s Fifth Schedule.
- New VAT Developments Reshape Gambling and Betting Sector Taxation
New amendments to Malta’s VAT rules for gambling (L.N. 86 of 2026) will likely narrow or redefine the VAT exemption scope, affecting operators’ ability to recover input VAT and thereby influencing overall sector taxation until further practical guidance clarifies the changes.
Montenegro
- IKOF: Ensuring Receipt Traceability and Verification in Fiscal Systems with Unique Alphanumeric Codes
IKOF is a unique 32-character alphanumeric receipt code generated by POS systems that enables traceability and verification in fiscal systems by encoding receipt and taxpayer details and must be printed on every fiscal receipt.
Netherlands
- VAT on Management Services for CDC Pension Fund: Not a Common Investment Fund, Appeal Dismissed
The court dismissed the appeal, holding that the CDC pension fund’s management services were not subject to treatment as a “common investment fund” because participants do not bear investment risk comparable to that in such funds under Dutch VAT law.
- Court Upholds Fine for Late VAT Filing; Objection Partially Granted, Penalty Deemed Appropriate
The court partially granted the taxpayer’s appeal by reducing the assessed non-payment-related amounts to zero but upheld the €68 fine for late VAT filing as appropriately imposed.
- VAT Zero Rate Denied for Export of Horse Shares: Appeal Unsuccessful, Tax Assessment Upheld
The court denied the taxpayer’s appeal seeking a VAT zero rate on exports of shares in living horses sold to foreign buyers, ruling that the sale transferred disposal rights and thereby upheld the additional VAT assessment (following a successful appeal by the tax inspector).
- VAT Exemption Denied for Services to Pension Funds with CDC and DC Schemes, Court Rules
The court held that VAT exemption under Article 11(1)(i)(3) of the Dutch VAT Act does not apply, wholly or partially, to a company’s services for pension funds administering both CDC and DC schemes.
- VAT Exemption for Pension Fund Management: Distinction Between Accumulation and Payout Phases Disputed
The case disputes whether services managing a Dutch pension fund are VAT-exempt as a “common investment fund,” specifically whether exemption should apply differently during the fund’s accumulation versus payout phases.
- VAT on Pension Fund Management Services: Not a Common Investment Fund, Appeal Dismissed by Court
The court dismissed the claimant’s appeal, holding that VAT was correctly due because the pension fund was not a “common investment fund” under Dutch VAT law given that participants did not bear comparable investment risk.
- VAT on Complaint Handling Fees for Lotteries: North Holland Court Ruling, April 2024
The North Holland court held in April 2024 that VAT applies to registration fees for complaint handling related to lotteries because the complaint-handling services provided in that context are taxable VAT services.
- Hague Court: Zero Rate VAT Not Denied for Lack of Fiscal Representative if Material Conditions Met
The Hague Court of Appeal held that a foreign supplier’s VAT zero rate for goods under excise duty suspension cannot be denied solely for failing to appoint a Dutch fiscal representative, provided the substantive conditions for the zero rate are met.
- German Tourists Stay Away After VAT Hike on Holiday Homes, Bookings Drop Up to 20%
After the Netherlands raised VAT on overnight stays in holiday homes and hospitality from 9% to 21% in January, many businesses passed the higher cost to guests, driving vacation prices up. German tourists—typically about 30% of bookings—are now booking 10–20% less, especially near the border, with some evidence that the overall slowdown is compounded by higher tourist taxes and other rising costs.
- VAT on Real Estate: Major Financial Impact, But Rules Remain Unclear and Overly Complex
The article says VAT in real estate has a major financial impact and continues to be undermined by unclear, overly complex rules—especially around VAT deductibility across the real estate lifecycle (buying, using, and selling). Research by Nino Arzini finds regulatory gaps and proposes a practical framework to identify problems, calling for clearer and more consistent legislation and further study on how VAT should fit real estate transactions. Source: taxence.nl.
- Select No zero-rate applied for the sale of half ownership of horses to foreign buyers
A court has ruled that VAT zero-rate treatment does not apply to BV X’s sale of 50% horse ownership shares, upholding an additional VAT assessment after an audit.
- VAT Exemption Denied for Pension Fund Management Services Due to Lack of Investment Risk
Fiscal unity X’s claim to VAT exemption for pension fund management services was denied because participants in the relevant CDC scheme do not bear investment risk. The court held that X provides one indivisible management service across all pension schemes, so the exemption for management of a common investment fund does not apply, including to survivor’s pension management. The appeal was dismissed.
- No VAT Exemption for Pension Fund Management Services Covering Both Accumulation and Payout Phases
The court held that because the pension fund management service was a single indivisible fee covering both the risk-bearing accumulation phase and the non-qualifying payout phase, it did not qualify for VAT exemption in full.
- Court Confirms VAT Assessment for Cross-Border Car Purchase and Leaseback Arrangement
The court confirmed that X’s cross-border purchase and leaseback of a German-registered car resulted in an intra-Community acquisition taxable in the Netherlands for 2013, allowing a second assessment after annulment and upholding a reduced 10% penalty.
- VAT Increase Has Not Yet Impacted Hotel and Holiday Home Bookings, Data Shows
Data from multiple accommodation providers indicates the Jan 1 VAT increase has not yet negatively affected hotel, holiday home, or campsite bookings, though some price changes and customer shifts may mean impacts could emerge later.
- Old VAT Arrangements Apply to New Care Facility Complex, Full Input Tax Deduction Allowed
Stichting X’s new care facility complex is subject to the old VAT arrangements, and it is entitled to full input VAT deduction on construction costs because the production spaces are used solely for taxable activities.
- Netherlands Prepares for EU ViDA: Mandatory E-Invoicing and Digital VAT Transformation by 2035
The Netherlands is preparing for the EU ViDA directive by planning mandatory structured e-invoicing starting in 2027–2030 and full VAT alignment by 2035, with policy decisions in progress over whether to cover only cross-border B2B or also domestic B2B and real-time reporting.
- Pension Fund Management with VAT: No Investment Risk for Participants, CDC Scheme Dispute
BV X sought VAT exemption for €90,103 of management services to a Dutch CDC pension fund, arguing the fund was a VAT-exempt common investment fund because participants bore investment risk, though the dispute hinged on whether that investment risk was effectively on participants (benefits 63% tied to investment returns).
- No VAT Exemption for Pension Fund Management: Participants Do Not Bear Investment Risk, Court Rules
A court ruled that VAT exemption does not apply to pension fund management services because participants’ pension entitlements aren’t tied to investment results and they do not primarily bear the investment risk, rejecting the taxpayer’s neutrality argument.
- No zero-rate applied for the sale of half ownership of horses to foreign buyers
The Court of Appeal held that the sale of 50% co-ownership in showjumping horses to foreign buyers is a domestic supply and not eligible for the zero VAT export rate, so X BV’s additional €117,460 VAT assessment was upheld.
- Knowledge group: no reduced VAT rate for stomach tablets with calcium carbonate
Gastric tablets containing calcium carbonate (and magnesium carbonate) are not eligible for a reduced VAT rate as food products because they are classified as not being medicines and not meeting the VAT Act’s food-product criteria, per the Turnover Tax Knowledge Group’s ruling on “stomach tablets” sold as dietary supplements.
- Remuneration for publication rights taxed at the general VAT rate
The District Court of Gelderland held that publishers’ remuneration for publication rights is subject to the standard VAT rate because publication and reading rights are separate supplies and publication rights are not a (digital) delivery of an article or subordinate to reading rights, so the reduced VAT rate and neutrality objections do not apply.
- Organization of race training services is composite service for VAT purposes German Race Training at Zandvoort Subject to German VAT Despite Dutch Location
The Court held that race training for a German customer is a single composite service taxable in Germany for VAT purposes, while race organisation for another German customer involves separate supplies taxable where performed (Netherlands vs Germany), leading to different VAT outcomes.
- Former Director Cannot Object to VAT Assessments Imposed on Company After Resignation
A former director who is no longer the last director or shareholder cannot object to VAT additional assessments imposed after his resignation, since only the last director, shareholder, or liquidator may object under Article 26a AWR and this limitation is not overridden by Article 6 ECHR or proportionality.
- Hotels and Vacation Rentals Absorb VAT Hike, Bookings Remain Stable Despite Higher Tax
Despite VAT on hotel stays and vacation rentals rising from 9% to 21% in January, most hotels and landlords are largely absorbing the increase rather than fully passing it on, keeping prices stable and maintaining steady bookings.
- Dutch Government Loses €1 Billion Annually as Drivers Fuel Up Across Borders Due to Price Gap
The Dutch government is losing roughly €1 billion per year in fuel-tax revenue because Dutch drivers buy over 1 billion liters of cheaper fuel abroad, prompted by price gaps with neighboring countries and worsening fuel-price pressures.
- Dutch Fuel Buyers Flock to Belgium, Costing Dutch Stations and Government Over 1 billion Euros Annually
Dutch motorists are increasingly buying cheaper fuel in Belgium—hurting Dutch border gas stations and costing the Dutch government over €1 billion a year in lost tax revenue—prompting calls for tax alignment with neighboring countries.
- Dutch VAT Changes: New Rates for Art, Culture, Accommodation, and Digital Refunds by 2026
In the Netherlands, VAT rules are set to change by 2026: Iris photo products will not qualify for the reduced rate, the 9% reduced rate for culture/media/sports continues at least until Jan 1, 2026, accommodation VAT will increase from 9% to 21% then, and the government is also considering temporary rate hikes (possibly to 10% in 2026 and 15% for some sectors by 2028) while VAT refund claims by non-EU businesses must be filed digitally from Apr 1, 2026.
- Amsterdam Court Rules Lottery Mass Claim Registration Fees Subject to VAT as Service Provision
The Amsterdam Court of Appeal held that VAT applies to lottery victims’ mass-claim registration fees because the fees represented payment for services performed in pursuing compensation for misleading lottery prize statements.
- Zero rate refused at car dealer due to inadequate evidence
A used car dealer’s application of the EU zero VAT rate was rejected because it couldn’t adequately prove the cars were transported and received in another Member State, and its further appeal was dismissed for non-payment of court fees.
- No deduction of input tax for legal expenses of DGA
The Hague District Court denied DGAX BV’s €5,040 input VAT deduction on legal expenses because it failed to show the legal assistance was primarily for the company’s business activities rather than for its DGA’s personal legal matters.
- Bill to Implement EU VAT in the Digital Age Directive: Single VAT Registration Provisions
The bill implements the EU’s VAT in the Digital Age “single VAT registration” rules by expanding one-stop-shop VAT schemes, phasing out the call-off stock arrangement, and replacing it with a new transfer system.
- Sale of Building Plots Is a VAT-Taxable Business Activity, not a Private Transaction, Court Rules
The Amsterdam Court of Appeal held that selling building plots taken from private assets can still be a VAT-taxable business activity where the seller took extensive preparatory steps (e.g., zoning changes, research, infrastructure and utility connections) amounting to VAT entrepreneurship.
- Registration fees of victims of a lottery compensation for services for consideration
In 2015, C BV collected registration fees from lottery victims with a promise to pursue compensation, and the Amsterdam Court of Appeal held these fees were taxable services for consideration despite arguments that they were collective-interest costs, did not cover expenses, yielded no results, and that the place of supply had shifted to Guernsey.
- No Reduced VAT Rate for Iris Photo Products; Court Rules Not Qualifying as Art Objects
A Dutch court ruled that X’s iris photography products do not qualify as art objects under the VAT law, so the reduced VAT rate cannot be applied.
- Discriminatory requirement of tax representative does not stand in the way of zero VAT rate for excise goods
Although a Dutch BV had to appoint a tax representative due to its foreign-taxpayer status, the Court held this discriminatory requirement did not prevent the BV from receiving the zero VAT rate for alcoholic excise goods.
- Active Steps in Plot Delivery Make Seller a VAT Entrepreneur, Rules Amsterdam Court
The Amsterdam court held that a seller who actively redeveloped and marketed two plots (e.g., rezoning, demolition, infrastructure, and using an estate agent) was acting as a VAT entrepreneur, so VAT is due on the one-time delivery of the plots.
- Reducing Uncertainty: Improving VAT Deduction Rules for Real Estate Transactions Across All Lifecycle Phases
Nino Arzini’s PhD research finds that unclear, overly complex VAT real-estate deduction rules across acquisition, use, and disposal misalign with VAT’s purpose, and proposes a practical framework and recommendations to improve clarity, consistency, and legal alignment to reduce business uncertainty.
- Standard VAT Rate to Replace Reduced Rate for Ornamental Horticulture Products from January 2028
From January 1, 2028, the Netherlands will replace the 9% reduced VAT rate on ornamental horticulture products with the standard 21%, applying to sales in the Netherlands (not exports), likely raising prices and affecting demand and jobs while generating an additional €328 million per year in tax revenue.
- Wage Deductions for Employee Housing Are VAT-Taxable, Court Rules Against Lithuanian Agency
A Dutch court ruled that a Lithuanian employment agency’s wage deductions for employee housing constitute a VAT-taxable service because the housing has a direct link to the staff’s compensation, requiring a Dutch VAT return rather than reliance on a specific VAT exemption.
North Macedonia
- North Macedonia Cuts Fuel VAT to 10% for Two Weeks to Ease Price Surge
North Macedonia temporarily cut fuel VAT from 18% to 10% for two weeks starting March 23 to curb a recent price surge while limiting long-term budget impact.
Norway
- Norway Implements Temporary Fuel Tax Cuts Following Parliamentary Decision
Norway will temporarily cut all road fuel excise taxes to zero from 1 April to 1 September 2026, lowering petrol and diesel pump prices while causing an estimated NOK 3.3 billion revenue loss, alongside limited temporary CO₂ tax relief for fishing and maritime use.
Poland
- Tax Guidance Allows VAT Exemption Correction for Defense Deliveries Delayed by SAFE Certificate
New March 9, 2026, tax guidance allows suppliers to retroactively correct VAT for defense deliveries funded by SAFE by issuing a corrective invoice once the delayed, stamped VAT exemption certificate is received—avoiding the previously unavoidable 23% VAT with no subsequent correction.
- KSeF Phase Two: System Stable, But Companies Face Integration and Invoice Duplication Issues
KSeF Phase Two is running stably, with the system processing millions of invoices daily as invoicing through KSeF becomes mandatory from April 1, 2026. However, companies are dealing with integration problems—such as duplicate invoices, accounting-system incompatibilities, and inconsistent invoice data placement—while transitional support for multiple invoice formats continues and penalties are delayed until later.
- VAT still reigns supreme in the Supreme Administrative Court, the role of tax advisors is growing
In 2025, the Supreme Administrative Court saw record VAT-focused caseloads while cutting backlogs, and tax advisors’ prominence as representatives before the court is rising amid complex, frequently changed tax laws and inconsistent tax-authority interpretations.
- Mandatory Cash Registers for Parking Services from April 2026: New Regulations and Exemptions
From April 1, 2026, parking services for cars and other vehicles must be recorded with cash registers under a December 17, 2024, finance ministry regulation, except for certain employer-to-employee and housing cooperative/community-to-resident arrangements.
- Reduced VAT Rate on Fuels: 8% Instead of 23% from March 31 to April 30, 2026
From March 31 to April 30, 2026, the VAT rate on fuels will be reduced from 23% to 8%, based on a regulation issued by the Minister of Finance and Economy on March 28, 2026.
- Draft Law Proposes VAT Changes Effective October 2026 and January 2027
A draft law submitted to the Council of Ministers proposes VAT changes effective October 1, 2026, and January 1, 2027, including updates to taxpayer/payer registration and identification rules.
- Mandatory KSeF E-Invoicing for Most Polish Businesses from April 2024: Key Exceptions Explained
From April 1, 2024, most Polish businesses must issue e-invoices through the KSeF system. Exceptions include businesses with total invoice amounts up to 10,000 PLN gross per month may issue outside KSeF until the end of 2026; until end-2026, cash-register invoices and simplified invoices (e.g., receipts showing the buyer’s NIP) are also allowed outside KSeF. Certain invoice types are permanently excluded from KSeF, including transport/toll-related tickets and invoices for VAT-exempt financial activities, as well as invoices documenting consumer sales.
- Increased Limits for KSeF Certificates Issued on PESEL: More Requests and Active Certificates
The limit for KSeF certificates issued via PESEL has been raised, allowing 12 requests per 30 days (from 6) and up to 6 active certificates at once (from 2).
- New JPK_VAT Codes: How to Mark Foreign Invoices and Offline Documents in 2026
For the February 2026 JPK_VAT filings, foreign invoices/offline documents should be reported with a KSeF number or new codes (OFF, BFK, DI), but there’s disagreement over whether foreign acquisition/import-of-services documents should use BFK or DI because the Ministry of Finance hasn’t issued a clear directive.
- Issuing Invoices to Receipts in KSeF: VAT Records and No Double Taxation Explained by KIS Director
In KSeF, invoices issued to receipts already recorded on a cash register must carry the “FP” symbol and are recorded only for information (not affecting VAT/revenue because VAT is already reported via the cash register “RO” report), so issuing such invoices does not cause double taxation.
- How to Issue an Invoice in KSeF: Step-by-Step Guide for VAT Taxpayers and Accountants
KSeF lets VAT taxpayers issue structured e-invoices by first ensuring authorized access (with the right authentication method) and permissions, preparing the required invoice data in KSeF’s logical format (often via invoicing software), and then submitting the invoice through the system.
- KSeF Exemption in 2026: How to Calculate the 10,000 PLN Sales Limit and When to Invoice
In 2026, businesses whose KSeF-required invoiced gross sales in a month do not exceed 10,000 PLN may invoice outside KSeF, with the limit excluding specific invoice/receipt types, and once the threshold is exceeded, subsequent invoices that must be issued in KSeF are required.
- Poland Temporarily Cuts VAT and Excise Duty on Fuel Amid Middle East Crisis
Poland temporarily reduced VAT on motor fuels and cut gasoline and diesel excise duties to EU minimums in late March to early April 2026 to offset rising fuel prices linked to Middle East tensions, costing the government over PLN 1.3 billion.
- Key Provisions of Poland’s Proposed Digital Tax Bill Targeting Large Global Entities
Poland’s proposed digital tax would impose a 3% levy on specified digital services (not editorial publishers or direct sellers) for large global groups with worldwide revenue over EUR 1 billion and Polish revenue above PLN 25 million, with the tax creditable against CIT, aiming for Council of Ministers approval in Q3 2026.
- How Will New e-Invoice Rules Affect Consumer Invoices from April 2026?
From April 1, 2026, KSeF will cover more taxpayers, but consumer invoices still only need to be issued if requested, and they can continue to be provided as paper or electronic documents, with KSeF-based issuance adding a QR code for verification.
- Poland Expands National E-Invoicing System: Key Dates and Support for All VAT Taxpayers
Poland’s Ministry of Finance will expand the KSeF e-invoicing system nationwide—starting with large companies from February 1, 2026, followed by all other VAT taxpayers from April 1, 2026, and the smallest entities by January 1, 2027—with no penalties for 2026 errors and free support tools provided.
- Poland Updates JPK_VAT Structures for Mandatory KSeF E-Invoicing Effective February 2026
Poland’s Ministry of Finance has published draft JPK_V7M(3) and JPK_V7K(3) VAT report structures that will be mandatory from 1 February 2026 to align with mandatory KSeF e-invoicing and related deposit changes.
- Poland Shifts VAT Approach on Contractual Penalties: Key Court Rulings and Upcoming e-Invoice Changes
Poland’s courts and tax authorities are increasingly treating contractual penalties—based on their economic function rather than their form—as VAT-liable services, with mixed rulings still exempting some types, and the mandatory e-Invoice system from 2026 set to change how these penalties must be invoiced and reported.
- When Can a Taxpayer Fully Deduct VAT on Company Car Expenses? WSA Wrocław Judgment 2026
The WSA Wrocław (2026) held that a taxpayer may fully deduct VAT on company car expenses where objective, enforceable measures (e.g., bans on private use, GPS tracking, and mileage monitoring) effectively prevent any private use, despite cars being allowed to be kept at employees’ homes.
- VAT Tax Point for Sales Bonuses: Impact of Quality Verification and Payment Timing
VAT on sales bonuses is due when the underlying service is performed (i.e., when the quality/sales conditions tied to the bonus are met), not when the distributor later verifies the reports or at the end of a settlement/payment period.
- Poland Temporarily Cuts Fuel VAT to 8% and Caps Prices to Combat Inflation and Profiteering
Poland will temporarily cut fuel VAT to 8% and impose capped retail prices on key fuels from late March to April 2026, aiming to curb inflation and profiteering amid higher global oil costs.
- Date of Sending to KSeF vs. Date of Revenue Recognition for Sole Proprietors
For sole proprietors, taxable income is recognized on the invoice/service date (e.g., Feb. 28 when the service is performed and the invoice is issued), while the KSeF acceptance/numbering date (e.g., March 1) and any KSeF processing delays do not change the tax moment.
- KSeF Enforces Objective Invoice Dates, Impacting Polish VAT Settlement and Reporting Deadlines
KSeF treats the invoice issue date as the date it is sent to the system (rejecting future dates), making invoice dates objective and thereby affecting Polish VAT settlement and reporting deadlines.
- Poland Cuts Fuel Excise, Eases Audit Rules in 2026 Tax Reform for Economic Growth
Poland’s 2026 tax reform will cut fuel excise duties and ease audit-company regulations to reduce costs and administrative burdens, supporting economic growth ahead of early 2026.
- National e-Invoicing System: New Requirements for Businesses from April 2024
From April 1, 2024, Polish businesses with sales up to PLN 200 million must issue invoices via the National e-Invoicing System (KSeF), with small monthly invoice-value taxpayers (up to PLN 10,000 gross) exempt until January 1, 2027.
- Poland Temporarily Reduces VAT and Excise Duties on Fuels in April 2026
Poland will temporarily reduce VAT to 8% on certain fuels from March 31–April 30, 2026, and lower related excise duties from March 30–April 15, 2026, for specified gasoline, diesel, and qualifying biocomponents, requiring businesses to update billing and compliance systems accordingly.
- Poland Delays Mandatory E-Invoicing, Sets New KSeF Rollout Dates and System Overhaul Plans
Poland has delayed mandatory KSeF e-invoicing to from Feb 1, 2026, for large firms and April 1, 2026, for others (with possible later rollout for micro-entities), while rebuilding the system with modular upgrades and considering cost/penalty relief.
- Why KSeF Should Not Affect Self‑Invoicing Policies
KSeF should not affect self‑invoicing policies because its technical transmission/validation role cannot lawfully change the substantive VAT rules under the Polish VAT Act—so VAT deduction acceptance should not be denied merely for failing unspecified formal expectations unsupported by KSeF regulations.
- Temporary VAT and Excise Duty Reduction, Fuel Price Cap Effective March-April 2026
From March 31 to April 30, 2026, certain fuels and biocomponents will have an 8% VAT rate and firms will be barred from selling liquid fuels above a minister-set maximum price, while excise duties from March 30 to April 15 will be PLN 1239/1000l for motor gasoline and PLN 880/1000l for diesel oils and biocomponents.
- Poland’s National e-Invoicing System Ready for April 1, 2026, Launch, New Features Announced
Poland’s KSeF national e-invoicing system is set for mandatory launch on April 1, 2026 (with limited exemptions), already processing billions of invoices and rolling out new user-friendly features like simpler scam-invoice reporting.
- Tax Office Challenges VAT Exemption for Online Sellers, Demands Back Taxes for Single Disqualified Sale
Tax authorities are using platform data to scrutinize online sellers’ VAT exemptions and can claw back VAT and interest for up to three years even after a single non-qualifying sale, potentially trapping taxpayers into losing exemptions and facing sizable retroactive tax demands.
- Poland Plans Fuel Tax Cuts and Price Caps to Tackle Soaring Fuel Costs
Poland’s government, led by Prime Minister Donald Tusk, is proposing fuel tax cuts and a daily-adjusted retail price cap, along with a windfall tax on refiners, to curb sharply rising gasoline and diesel costs ahead of potential implementation by Easter.
- Taxation of High Storage Warehouses: Building or Structure, and Who Pays Property Tax?
The 2025 amendment clarified warehouse classifications but sparked a dispute where a High Storage Warehouse for beer was deemed a structure (not a building) because it stores liquid, and—while temporarily attached via a lease—its landowner was not automatically liable for the property tax.
Portugal
- Portugal Rules Out Food VAT Cut, Says Savings Would Benefit Producers, Not Consumers
Finance Minister Joaquim Miranda Sarmento said Portugal will not cut VAT on food, arguing such savings typically go to producers and distributors rather than consumers, and similarly ruled out VAT reductions on fuel or basic food baskets while attributing recent inflation to higher fuel costs.
Romania
- Romania Updates VAT Return Forms to Reflect 2025 Rate Changes and Simplify Reporting
Romania’s tax authority (ANAF) is revising pre-filled 2025–26 VAT return forms to align with the 2025 VAT rate changes—raising the standard rate to 21%, introducing an 11% reduced rate, and applying a temporary 9% residential rate—while simplifying reporting by removing obsolete rate fields from 2026 onward.
Russia
- Russian Tax Service Clarifies VAT Rules for Mining Infrastructure and Computing Power Services
The Russian Federal Tax Service clarified VAT rules for supplying mining infrastructure and computing power. Russian operators generally cannot provide mining infrastructure located in Russia to foreign legal entities. VAT is assessed based on the seller’s location. If Russian entities supply these services for use in Russia, they are subject to Russian VAT even when the infrastructure is abroad.
Serbia
- Online Workshop: New VAT and E-Invoicing Rules in Serbia Effective April 2026
An online workshop on April 22–24, 2026 will explain Serbia’s major VAT and e-invoicing changes effective April 2026, covering practical compliance such as tax base reduction, prior tax corrections, invoice cancellation, internal account handling, and e-invoice issuance and processing via the SEF system.
Slovakia
- Slovakia Plans Major Expansion of Domestic VAT Reverse Charge to High-Risk B2B Services
Slovakia Plans Major Expansion of Domestic VAT Reverse Charge to High-Risk B2B Services
- Slovakia Proposes VAT Threshold Hike to €85,000 Effective July 2026, Awaits Parliament Approval
Slovakia has proposed increasing its VAT registration threshold from €62,500 to €85,000 effective July 1, 2026, pending Parliament’s approval.
- Parliament Considers Bills on VAT Registration Threshold Increases and Domestic Reverse Charge Extension
Slovakia’s Parliament is reviewing draft VAT amendments to increase mandatory VAT registration thresholds to ease burdens on smaller businesses and to potentially extend the domestic reverse charge mechanism, with final details and effectiveness from 1 July 2025 still pending legislative adoption and publication.
- Slovakia’s VAT Act
Slovakia’s VAT Act (Act No. 222/2004 Coll.) is the primary VAT legislation, repeatedly amended to align with EU requirements and address issues affecting VAT rates, registration, exemptions, and cross-border transactions.
- Financial Administration Continues E-Invoicing Training, Hosts Webinar for Public Sector Institutions
The Financial Administration continued its campaign on mandatory e-invoicing by holding a webinar for public sector institutions covering legal timelines and B2G technical requirements, including readiness to receive and issue structured XML invoices via the PEPPOL network from January 1, 2027.
- Slovakia Mandates Real-Time E-Invoicing and E-Reporting for VAT Businesses from 2027
Slovakia will require VAT-registered businesses to implement real-time e-invoicing and e-reporting starting January 1, 2027, with invoice data submitted via a decentralized 5-corner model through certified service providers and the Financial Administration instead of traditional VAT returns.
Spain
- Spain Implements Temporary Cuts to Corporate, VAT, and Energy Taxes Amid Middle East Crisis
Spain’s government enacted Royal Decree-Law 7/2026 to temporarily cut corporate, VAT, and certain energy taxes through June 30, 2026, while extending incentives for renewable and electric-vehicle investments and providing targeted aid and refunds amid the Middle East crisis.
- Mass Extension of Customs Clearance Authorizations Now Available Online via Responsible Declaration
Customs clearance authorization representatives can now extend their powers online via the Electronic Office by submitting a responsible declaration confirming the authorizations remain valid and unrevoked.
- New Version 1.24 of AES Export Declaration Web Services Guide Released with Gibraltar Updates
Version 1.24 of the AES Export Declaration Web Services Guide has been released, updating web service message specifications for operator–customs exchanges under AES and adapting them for UCC compliance and Gibraltar-related EU–UK transit requirements.
- Spain’s VAT Exception: Barriers and Missed Opportunities for SMEs in the European Single Market
Spain is the only EU country still requiring VAT from the first euro despite EU reforms that would harmonize a small-business VAT exemption and one-stop VAT compliance, leaving Spanish SMEs with greater administrative burdens, weaker liquidity, and a competitive disadvantage.
- Spain Mandates E-Invoicing for Domestic B2B Transactions, Phased Rollout by 2028
Spain will phase in a requirement for structured e-invoicing for domestic B2B transactions—starting July 2027 for large businesses and July 2028 for others—excluding B2C and cross-border deals and requiring tax-authority reporting via accredited platforms to improve VAT compliance and payment practices.
- Spain Publishes Royal Decree Implementing Mandatory B2B Electronic Invoicing
Spain has published Royal Decree 238/2026 (BOE, 31 March 2026) to implement mandatory structured B2B e-invoicing in Spain under Law 18/2022, requiring exchange via AEAT or interoperable platforms and adding mandatory electronic invoice-status reporting to address late payments, with the rules effective after entry into force.
- Spain Mandates E-Invoicing to Streamline Business, Cut Late Payments, and Modernize Economy
Spain has mandated electronic invoicing for transactions between businesses and freelancers to reduce administrative burdens, tackle late payments, and modernize the economy by improving transparency, cutting costs, and supporting SMEs’ digital adaptation and liquidity.
- Spain Mandates E-Invoicing for B2B Transactions, Phased Rollout Begins July 2026
Spain will require structured e-invoicing for all domestic B2B transactions, beginning with a phased rollout after July 2026, with invoices in machine-readable formats and status reporting to the tax authority (AEAT) within four days, enforced on large firms first and then smaller ones, alongside platform options and early PDF-provision requirements.
- Navigating Spain’s Real-Time VAT Compliance: SII and VeriFactu Integration, Deadlines, and Automation
Spain’s SII (already active) and phased VeriFactu certified invoicing require tightly integrated, automated systems and API-driven real-time validation/submission, with VeriFactu deadlines starting January 1, 2026, for large businesses and July 1, 2026, for SMEs/self-employed (subject to AEAT updates).
- Mandatory B2B e-invoicing framework approved
Spain approved a royal decree on March 24, 2026, making B2B e-invoicing mandatory under a machine-readable framework aligned with the EU’s ViDA initiative, rolling out in phases starting with firms over €8 million revenue within a year and requiring reporting of invoice lifecycle and payment status.
- Spain Mandates Electronic Invoicing for Domestic B2B Transactions Starting July 2027
Spain will require domestic B2B electronic invoicing in structured, machine-readable formats with AEAT status reporting starting July 2027 (large firms) and July 2028 (others), under an approved March 24, 2026, Royal Decree.
- Spain Mandates B2B E-Invoicing for Businesses Under Crea y Crece Law Starting 2026
Spain will require B2B e-invoicing for companies and professionals covered by the Crea y Crece Law starting March 24, 2026, using interoperable machine-readable invoice formats and including required reporting to combat late payments.
- Mandatory Electronic Invoicing for Businesses in Spain: Scope, Requirements, and Implementation Deadlines
Spain’s Royal Decree 238/2026 mandates electronic invoicing between businesses/professionals for invoices issued to Spanish business/professional recipients (excluding simplified invoices), with the rule effective 20 days post-publication and enforced after 12 months for firms over €8M turnover and after 24 months for others, using either compliant private platforms or the public solution.
- Spain Mandates B2B E-Invoicing with Phased Rollout Under New Royal Decree
Spain’s new Royal Decree under the Crea y Crece Act mandates phased B2B e-invoicing via AEAT or certified private platforms using standardized formats and a decentralized CTC model to improve tax transparency, curb VAT fraud, and reduce late payments.
- Bizkaia: New Rules for VAT Model 369 on Distance Sales Effective April 2026
Bizkaia will require VAT Model 369 distance-sales filings to be submitted by the end of the calendar month after the relevant period, with the changes applying from April 1, 2026.
Sweden
- Tax Exemption for Credit Services and Guarantees No Longer Applies: Updated Guidelines 2026
As of April 2, 2026, VAT exemption for credit services and credit guarantees will no longer apply under updated Swedish tax guidelines, in line with recent EU and Swedish case law and VAT Committee guidance.
- Position on Ongoing Services Ending Early, VAT, No Longer Applies from April 2, 2026
The Swedish tax authority has withdrawn its January 27, 2021, VAT position on ongoing services that end before the contract period, stating that from April 2, 2026, the issue will follow EU Court of Justice case law (e.g., C-622/23) with updated guidance on its Legal Guidance website.
- Tax Exemption for Credit Services and Guarantees Statement No Longer Applies from April 2026
From April 2026, the prior VAT exemption for credit-related services, credit guarantees, and other securities under the guidance issued on September 2, 2020, will no longer apply. The withdrawn statement will be replaced by the corresponding information in the tax authority’s standard guidance pages.
- Clarification: Food Served on Porcelain and Lending of Cutlery – Restaurant Service or Not?
Food served on porcelain that the customer cannot take home (typically with added serving/dishwashing services) is generally treated as restaurant/catering service, but merely lending cutlery to someone taking the food away is not.
- Café Services in Schools: Distinguishing Restaurant Services from Food Sales
In school or workplace cafés, onsite consumption in the designated dining area counts as restaurant service, while grab-and-go purchases for eating elsewhere in disposable packaging count as food sales.
- Sweden Releases Final Report on VAT Rules for Property Leasing and Transfers After EU Court Ruling
Sweden’s Ministry of Finance has issued a final report on VAT treatment for property leasing and transfers, addressing adjustments after a CJEU ruling and examining how voluntary taxation and property investment deduction rules align with EU law.
- Early Termination Fees for Ongoing Services Are Subject to VAT Regardless of Usage Rights
As of 2026-04-02, early termination fees paid for ongoing service contracts are subject to VAT as consideration for the underlying service, irrespective of where the termination right is set or whether the buyer continues using the service during the notice period.
- Sweden Plans Temporary Fuel Tax Cuts to Ease Price Surge Amid Middle East Conflict
Sweden will introduce temporary petrol and diesel tax cuts from May to September 2026 to curb fuel price increases linked to the Middle East conflict, offsetting higher costs at some expense to government revenue and with a likely small rise in emissions.
- Assessment of Single or Multiple Supplies for VAT Purposes: New Method and Classification Changes 2026
The Swedish Tax Agency has introduced a new 2026 method for deciding whether bundled goods and services are treated as a single or multiple VAT supplies, including revised guidance on classification and allocation of the taxable base that supersedes the 2025 position.
Turkey
- Turkey Revises Special Consumption Tax Rates for Gasoline, Diesel, and LPG Products
Turkey updated its special consumption tax (SCT) rates for gasoline, diesel, LPG, propane, and butane, effective April 2, 2026, following a change issued by the Turkish Revenue Administration on April 1, 2026. The update applies to the revised tax rates set for these fuels and gas products.
- Notification Requirement for Tax Exemption in Technoparks: Income, VAT, and Judicial Perspective
Income and VAT tax exemptions for activities in Turkish technoparks require a formal notification procedure, and the tax judiciary can treat failures or improper notifications as grounds to deny or limit the exemption, with only the portion of income generated within the zone eligible for the relief.
- New Income Record Subtypes Added to VAT Return No. 1 Effective March 2026
Effective with the March 2026 tax period, new VAT Return No. 1 income record subtypes 507, 508, and 509 have been added, with transactions automatically transferred to the “Other Transactions” table.
- Tax Authority Postpones VAT Rate Checks for Electronic Documents Until Further Notice
The tax authority has postponed until further notice the April 1, 2026, requirement to perform VAT rate checks on e-documents through private integrators, citing stakeholder feedback and the need for additional time to build the necessary systems and infrastructure.
- Changes to VAT and Withholding Tax Returns Announced on Digital Tax Office for 2026 Period
For the 2026 period, the Digital Tax Office has updated VAT return fields by replacing “Add/Remove Invoice” with separate purchase and sales invoice options and adding related requirements to complete attachment and VAT distribution tables when removing carried-forward purchases, while also adjusting rules for domestic purchases VAT and import VAT deductions.
- Postponement of VAT Rate Control Based on Registration and Activity Codes in e-Documents
The rollout of VAT rate controls for e-documents based on registration and activity codes, planned for 01.04.2026, has been postponed indefinitely by the Revenue Administration due to taxpayer feedback and the need for system and infrastructure improvements, with no further action required on previously announced e-invoice/package updates.
Ukraine
- VAT Implications When Returning Assets to Exiting LLC Members or Founders in Ukraine
In Ukraine, when an exiting LLC participant (member/founder) receives fixed assets that were contributed as charter capital, the transfer is treated as a taxable supply of goods. VAT applies on the return of such assets at the standard VAT rate. (Source: news.dtkt.ua)
- Re-registration of Sole Proprietors: VAT Threshold Calculation Includes All Transactions, Not Just New Ones
For sole proprietors on the general tax system, after re-registration all prior and subsequent transactions count toward the 1,000,000 UAH (excl. VAT) 12-month VAT registration threshold, and prior turnover must be included to avoid late registration and penalties.
- VAT on Free Imports from Non-Residents: Tax Base Rules for Further Supply or Sale in Ukraine
In Ukraine, VAT paid on goods imported free from non-residents may be credited, and when those goods are later transferred or sold, the VAT base is the contractual value but cannot be lower than the acquisition (purchase) price—so for free goods with acquisition price of 0 UAH the VAT base cannot drop below that threshold.
- VAT on Utility Compensation for Budget Institutions: DPS-2026 Clarifies No Tax Invoice Required
DPS-2026 clarifies that VAT does not apply to utility/maintenance/energy compensation received by Ukrainian budget institutions from tenants for leased property, so no VAT invoice needs to be issued.
- Enterprise Reorganization 2026: VAT Credit Preservation and Limit Transfer Algorithm for Successors
Ukraine’s 2026 enterprise reorganization rules for transformation preserve the VAT registration date and tax ID of a VAT payer and permit transferring negative VAT (tax credit) to the successor if the re-registration application is filed within 10 working days under the Tax Code and Ministry of Finance procedures.
- Reducing VAT Liabilities Before Reporting Deadline: DPS Algorithm for Filing Adjusting Calculations
The DPS algorithm requires a VAT payer who files an adjusting calculation before the payment deadline to report the reducing amount on line 18.2 so it appears in the corrective register and to calculate and pay any required tax within 10 days after the declaration deadline, including payment of understatements and any applicable 3% penalty subject to legal exceptions.
- Ukraine Plans to Abolish Tax-Free Threshold for Parcels Over EUR 45 Starting 2027
Ukraine’s Cabinet plans to end the VAT tax-free threshold for parcels over EUR 45 starting January 1, 2027, leaving only items sent free for personal or family use and valued at up to EUR 45 exempt.
- Self-Employed Earning Over 1 million UAH in 2026: No Mandatory VAT Registration Required
Independent professionals whose activities are taxed as personal income (18% PIT plus 1.5% military levy) are not treated as entrepreneurs for VAT purposes, so the mandatory VAT registration threshold of 1 million UAH in 12 months does not apply to them in 2026.
- VAT Data Table Submission 2026: Key Steps and Checklist from the Tax Service
The DPS outlines 2026 guidance and a checklist for submitting VAT data tables to invoice/adjustment-blocking commissions, including required documents, correct formats, official deadlines and forms, and where to find details on procedures and penalties.
- Combined VAT Accounting in Ukraine: Proportional Tax Credit Using Cash and “First Event” Methods for 2026
For 2026, Ukrainian tax authorities require combined VAT accounting where tax credits under the cash and “first event” methods are computed proportionally based on how goods/services are used under each method, with the cash method applying in specified cases under the Tax Code and the “first event” method generally tied to payment/compensation timing.
- Ukraine Plans Mandatory VAT for Entrepreneurs Earning Over 4 million UAH from 2027
Ukraine will require individual entrepreneurs (FOPs) earning over 4 million UAH annually to register for mandatory VAT starting January 1, 2027, aligning with IMF conditions and potentially adjusting an earlier lower threshold.
- Ukraine Proposes VAT on All Low-Value Imports, Following EU’s Abolition of €150 Exemption
Ukraine has proposed eliminating the €150 VAT exemption by charging VAT on all low-value international parcels at the point of purchase, aligning its policy with the EU’s planned abolition of the exemption and shift of VAT collection to online marketplaces by 2028.
- VAT Credit Denied if Invoice Registered Over 365 Days After Issue, Says Tax Authority
The tax authority says a buyer loses the right to claim a VAT tax credit for an invoice if it is registered in the Unified Register more than 365 calendar days after the invoice issue date, limiting inclusion of VAT to within 365 days from the invoice date.
- Write-Off of Intangible Assets and VAT Accrual: DPS Algorithm and Taxpayer Obligations
When an intangible asset is written off as incapable of generating further economic benefits, the VAT payer must treat the write-off as a taxable supply and accrue corresponding VAT liabilities using the DPS algorithm—calculating the tax base and issuing a consolidated tax invoice by the end of the reporting period, with the taxable value set at regular prices not below the book value at liquidation, in compliance with Article 198.5 of the Tax Code.
- How to Request and Receive a VAT Payers Registry Extract from the Kyiv State Tax Service
To obtain a VAT payers registry extract from the Kyiv State Tax Service, submit form No. 1‑ЗВР (in person, by mail, or electronically) with all required details such as your tax number and chosen delivery method, as extracts can be received electronically, by mail, or in person.
- Ukraine Approves VAT and Tax Reforms for Digital Platforms, E-Commerce, and International Parcels Starting 2027
Ukraine will introduce from January 1, 2027, VAT on international parcels and expanded tax reporting for digital platforms and e-commerce (with a 5% simplified PIT option for qualified resident sellers), aiming to curb the shadow economy and support reconstruction.
- VAT Implications of Free Charity Aid Transfer to Employees in 2026: Tax Base is Zero
In 2026, a VAT payer’s free transfer of goods (including to employees) whose purchase and supply prices are both zero results in a VAT tax base of zero, subject only to applicable VAT exceptions.
United Kingdom
- UK Introduces Full VAT IOSS Intermediary Framework from 1 April 2026
From 1 April 2026, HMRC will allow UK VAT-registered businesses established in Northern Ireland to act as VAT IOSS intermediaries, registering clients, filing monthly IOSS returns, and paying import VAT on their behalf under joint and several liability, with required client registrations, recordkeeping for 10 years, and a single monthly payment.
- Partial Success for Transwaste in VAT Kittel Appeal; Some Penalties and Input Tax Denials Upheld
Partial Success for Transwaste in VAT Kittel Appeal; Some Penalties and Input Tax Denials Upheld
- UK Ends VAT on Donated Goods, Boosting Charities by £72.5 Million Annually
UK Ends VAT on Donated Goods, Boosting Charities by £72.5 Million Annually
- Calls to Abolish VAT for Youth Clubs and Community Centres to Aid Vital Repairs
Calls to Abolish VAT for Youth Clubs and Community Centres to Aid Vital Repairs
- Court Ruling Redefines VAT Status for Further Education Colleges and Potentially Academies
The Court of Appeal ruled that Further Education colleges’ block funding is business income, so their educational activities are treated as business for VAT purposes and key VAT reliefs (like RCP) may no longer apply, potentially requiring VAT charges on fees while allowing some VAT reclaims, with possible wider effects for academies pending further action.
- Tribunal Partly Allows Transwaste VAT Appeal; Upholds Penalties Where Fraud Knowledge Proven
The Tribunal partly upheld Transwaste’s VAT appeal—allowing input tax for most transactions despite inadequate due diligence—but confirmed penalties for specific post-5 April 2017 and post-24 September 2019 transactions where Transwaste was found to have actual or constructive knowledge of the suppliers’ fraud.
- Limited SME Adoption and Understanding of E-Invoicing Despite High Familiarity Rates, HMRC Study Finds
HMRC’s study found that although many SMEs have heard of e-invoicing (59% familiarity), only 29% use it—most still rely on PDFs or email—showing adoption gaps across size and sectors, prompting further research into SME perceptions.
- Tribunal Rules Mega Marshmallows Not Confectionery; Zero-Rated for VAT Under UK Law
The UK VAT tribunal held that “Mega Marshmallows” are not normally eaten with the fingers and therefore are zero-rated for VAT rather than standard rated.
- Isle of Man Introduces VAT Relief for Charitable Donations by Businesses from April 2026
From 1 April 2026, Isle of Man VAT-registered businesses will be able to donate eligible goods (typically under £100) to eligible Attorney General–registered charities without paying VAT, provided the goods are for onward charitable use and the charity evidences receipt.
- Boehringer Ingelheim Ltd – Upper Tribunal Rules Against Taxpayer on Price Control Payments Reducing VATable Consideration
The Upper Tribunal largely found that payments Boehringer Ingelheim made to the DHSC under voluntary price control schemes do not generally reduce the VATable consideration for its pharmaceutical supplies. It rejected the idea that DHSC was the “economic final consumer” in most cases and clarified that a final consumer requires a relationship of reciprocal performance for the goods, affecting similar claims by other manufacturers.
- Colchester Institute Corporation (No. 2) – Court of Appeal Upholds Taxpayer Win on Grant Income as Consideration for Education
The Court of Appeal upheld Colchester Institute Corporation’s VAT victory, ruling that grant income received for approved educational activities is third-party consideration directly linked to exempt supplies of education, rejecting HMRC’s arguments.
- HMRC Updates VAT Guidance for Charities, Adds New Relief for Donated Goods from April 2026
HMRC has updated VAT Notice 701/1 for charities and added new guidance on a VAT relief from 1 April 2026 for VAT-registered businesses donating goods.
- HMRC Issues New Guidance on Option to Tax Property When Cancelling VAT Registration
HMRC has issued new guidance on how to notify it of an option to tax on land and buildings when cancelling VAT registration, and VAT Notice 700/11 has been updated to link to the guidance.
- Isle of Man Raises Late Payment Interest Rate on VAT to Align with UK from May 2026
From 1 May 2026, the Isle of Man Treasury will raise the late payment interest rate on VAT and other indirect taxes to match UK practice, with no interest charged on timely payments.
- Tribunal Confirms Full Pre-Registration VAT Recovery Based on Post-Registration Use, Rejects HMRC Adjustments
The Tribunal held that taxpayers can recover full pre-registration VAT under Regulation 111 based on normal partial exemption rules determined by post-registration use, rejecting HMRC’s proposed reductions and depreciation-style adjustment as having no legal basis.
- Considerations for the UK E‑Invoicing Mandate Roadmap – Discussion Paper (P2P Network / UKeLab)
The paper sets out design, policy, and implementation considerations for a staged UK mandatory B2B e‑invoicing rollout from 2026–2029, using a co‑created, decentralised interoperable “four‑corner” model with strong stakeholder engagement and SME readiness, while aligning delivery to the Budget process and leaving near‑real‑time reporting outside the 2029 mandate.
- Research and analysis Electronic invoicing: SME usage and attitudes
In 2025, HMRC commissioned quantitative and qualitative research (surveys of 800 SMEs and 45 interviews) to understand UK SMEs’ use, awareness, and attitudes toward electronic invoicing, informing upcoming e-invoicing policy, outreach, and guidance.
- Revisiting the 5% Rate for Building Works
The 5% VAT rate for building works applies only in two tightly defined cases—qualifying conversions to specified dwelling uses, or certain renovations of qualifying residential premises that have been unoccupied for at least two years—subject to strict conditions on “before vs after” changes, qualifying services/materials, correct apportionment for mixed works, and specific evidential/certification requirements (especially for RRP).
- UT: Payments to DHSC by Medicine Manufacturer Not VAT Price Reductions; Rebate Mostly Denied
The Upper Tribunal upheld HMRC in denying Boehringer Ingelheim’s VAT rebate because most payments to DHSC were treated as revenue levies rather than retrospective price reductions linked to specific supplies under Article 90, allowing VAT adjustment only where DHSC was the final consumer.
- Tories Urge Three-Year VAT Cut on Energy Bills to Ease Cost of Living Crisis
The Conservative Party is calling for a three-year VAT cut on household energy bills, funded by ending renewable/green levies and raising North Sea oil and gas output, to ease the cost of living crisis.
MIDDLE EAST
Bahrain
- Flower Shop Owner Jailed Three Years for Evading Over BD41,000 in VAT Payments
Flower Shop Owner Jailed Three Years for Evading Over BD41,000 in VAT Payments
- Bahrain NBR Updates VAT Real Estate Guide: New Clarifications on Lease Incentives and Fit-Out Contributions
Bahrain’s NBR updated its VAT Real Estate Guide (v1.6) by clarifying VAT treatment of lease incentives—especially rent-free periods, rent reductions, and fit-out contributions—without materially changing the broader rules on real estate supplies, construction, or input VAT recovery.
- Bahrain Updates VAT Guide on Healthcare
Bahrain’s National Bureau for Revenue has issued an updated VAT Healthcare Guide (31 March 2026) clarifying the VAT treatment—especially the zero-rating/exemption rules and documentation requirements—for healthcare services, medicines, and medical equipment.
Kuwait
- Kuwait Temporarily Bans Food Exports Without Approval to Safeguard Domestic Supply
Kuwait has temporarily banned all exports of foodstuffs without prior written approval for one month starting 1 March 2026 to protect domestic food security and stabilize prices, with penalties for violations under existing Kuwaiti laws.
- Dubai Extends Goods Transit Period to 90 Days; Kuwait Bans R22 Air Conditioner Imports
Dubai Customs extended the goods transit period from 30 to 90 days effective 31 March 2026, while Kuwait banned imports of R22 air conditioning units (allowing R22 spare parts for 10 years and requiring manufacturers to transition within three years).
Oman
- Oman Opens Fawtara Service Provider Registration, Marking Key Step Toward Mandatory E-Invoicing
Oman has opened registration for accredited Fawtara e-invoicing service providers, setting strict requirements as the tax authority finalizes standards, works with pilot feedback, and prepares for implementation workshops in 2026.
United Arab Emirates
- Dubai Customs Launches Temporary Transit and Oman Green Corridor to Ensure Uninterrupted Regional Trade Flows
Dubai Customs has launched temporary bonded transit rules and a “Green Corridor” with Oman to keep regional cargo moving smoothly despite port disruptions, rerouting shipments from Khorfakkan/Fujairah and Omani destinations to streamlined clearance procedures under strict compliance requirements.
- Dubai Customs Allows Temporary Cargo Transit via Khorfakkan and Fujairah Without Local Clearance
Dubai Customs’ Customs Notice No. 03/2026 permits temporary transit of cargo destined for Jebel Ali Port and its free zones via Khorfakkan and Fujairah without requiring local customs clearance to help safeguard trade flows.
- Dubai Customs Extends Goods Transit Period to 90 Days Effective March 2026
Dubai Customs will increase the goods-in-transit customs declaration period from 30 to 90 days starting 31 March 2026, with possible further extensions by approval, and the update applies only to transit declarations while temporarily overriding conflicting prior rules.
- New guidance package for UAE e-invoicing mandate
The UAE Ministry of Finance has issued a Peppol-based, decentralized “5-corner model” e-invoicing guidance package requiring all transactions in the UAE and rolling out mandatory compliance from January 1, 2027, for large businesses and July 1, 2027, for smaller ones, with businesses preparing via UAE-accredited Peppol-compatible ASP selection, EmaraTax onboarding, and end-to-end testing.
- UAE Electronic Document Specifications: PINT BIS Billing and Self-Billing AE 1.0.3 Released
The UAE released electronic document specifications version 1.0.3, with PINT BIS Billing and PINT BIS Self-Billing documents published on 27 March 2026.
Latest Posts in "World"
- Real-Time Tax: Why Most Companies Fail and How Compliance Is Becoming Continuous
- E–invoicing Developments Tracker
- Tax Authorities Already Use AI (And What Else Businesses Need to Know)
- Free Peppol Invoice Generator: Create, Customize, and Download Valid UBL Invoices for Testing
- VAT Concepts Explained: Bad Debt Relief and VAT Credit Notes
