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VATupdate Newsletter Week 34 2026

4 weeks ago

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LENS

Last week, many people in the Netherlands looked up at the sky to watch something rather unusual: a solar eclipse. Or, to be more precise, a partial solar eclipse.

People gathered on beaches and other places with a good view of the sky, wearing special protective glasses and patiently waiting for the moment when the Moon would move in front of the Sun.

It was quite a sight.

And it was also a useful reminder that sometimes what you see is not quite what you get.

The Sun was still there, of course. It simply appeared to be partly hidden behind the Moon. And although it may have looked tempting to take off those strange-looking glasses for a better view, that would have been a very bad idea. Ordinary sunglasses are not enough to protect your eyes from the Sun during an eclipse. You need the right glasses.

This reminded me of VAT.

Not because VAT has anything to do with astronomy, obviously. Although, considering how complicated some VAT rules have become, perhaps we should start looking for signs of intelligent life elsewhere.

The point is that, in VAT, having the right lens can make all the difference.

A transaction can look perfectly straightforward at first sight. You sell something to a customer, issue an invoice and charge VAT. Or perhaps you buy something, receive an invoice with VAT and happily put it into your accounts.

But then you put on your VAT glasses. And suddenly, you start asking questions.

Where is the customer established? What exactly is being supplied? Is it goods or services? Is the transaction intra-Community? Does a reverse charge apply? Is the supply exempt? Can the VAT be deducted? And in which country should it actually be reported?

What looked simple from a distance can suddenly look rather different through the right lens.

And this brings me to another astronomical fact that I find fascinating.

Pluto takes approximately 248 Earth years to complete one orbit around the Sun. Pluto was discovered in 1930, which means that in 2178, it will finally complete its first full orbit since its discovery.

I know what some of you are thinking: “But Pluto isn’t a planet anymore.” Indeed, the International Astronomical Union decided in 2006 that Pluto should be classified as a dwarf planet. Scientifically, I accept the decision.

Emotionally, however, I remain unconvinced.

Pluto was a planet when I was growing up, and for me, it will always be a planet. I am a romantic like that.

In any case, Pluto is in no hurry. It takes 248 years to make one trip around the Sun.

VAT, fortunately or unfortunately, is considerably less patient.

VAT rules can change within months. Sometimes within weeks. New legislation, court cases, guidance, reporting requirements, e-invoicing, ViDA, new interpretations… just when you think you have finally understood the landscape, someone moves the furniture.

And that is perhaps the real lesson from last week’s eclipse.

It is not enough to look. You need to look through the right lens.

With a solar eclipse, that means special glasses. With VAT, it means knowledge, experience, good processes and proper controls. And unlike Pluto, we don’t have 248 years to get there.

So, while we wait patiently for Pluto to complete its first orbit since its discovery, we will continue to keep a much closer eye on VAT. With or without special protective glasses.

Anyone interested in more VAT news, developments and occasional philosophical reflections on the strange similarities between tax law and everyday life can subscribe to the weekly VATupdate newsletter at VATupdate.com

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.

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