VATupdate Newsletter Week 48 2025

COURAGE

Sometimes VAT feels less like a tax system and more like a battlefield: shifting rules, surprise attacks from new regulations, and the constant need for strategy. And that’s before the e-invoicing portal crashes. So before diving into this week’s developments, take a deep breath.

Here are some highlights for this week:

ECJ Case T-657/24 (Versãofast)
The ECJ reaffirmed the uniform interpretation of VAT exemptions for intermediaries in credit negotiations. A reminder that even when national practices drift, the Directive remains the anchor.
E-Invoicing & Digital Reporting Mandates Worldwide
Governments worldwide continue accelerating digital control systems: new e-invoicing specifications, penalties and data rules in the GCC; updated scope and timelines across multiple EU jurisdictions. The direction is unmistakable: more data, faster, and in a format that machines (not humans) prefer.
VAT Fraud Cases in the EU, China & South America
Authorities have been busy. Very busy. Cross-border fraud tied to organised crime, customs/VAT import schemes, fake invoice rings, and multi-country syndicates targeting billions.
Caselaw on Core VAT Concepts
Local courts tackled economic activity, deduction rights, and registration headaches:
– trading virtual gold and in-game assets
– deductions based on invoices that never actually existed
– GST registrations cancelled without explanation

These are a reminder that even the fundamentals of VAT still evolve. Or at least get stress-tested regularly. And these challenges and changes reminded me of Joan of Arc.

Most people know the broad strokes of her story: the farm girl who led armies, inspired a nation, and helped turn the tide against the English in the Hundred Years’ War. Fewer people realise that she was only 14 years old when she first stepped into the chaos of medieval politics, war strategy, and divine mission statements.

Fourteen. Most of us were still trying to avoid homework and play outside instead at that age.

And yet, Joan rode straight into a world ruled by men, bureaucracy, conflicting authorities, and high-stakes consequences.

Which sounds suspiciously like modern VAT.

If Joan tried to liberate France today, she’d first need to upload her battle plan in XML, run it through a clearance portal, and wait for a real-time validation code. But in the 15th century, things worked differently. She may have claimed guidance “from above”, but there were no digital trails, matching of transactions, or signature verification logs.

Joan fought for France’s freedom; we fight for freedom from non-compliant invoices, contradictory guidance, and e-reporting portals that go offline exactly when the deadline hits. Different centuries, similar energy.

VAT is complex. Systems shift. Rules tighten. Fraudsters innovate.

But navigating VAT is like leading an army into a besieged city. And it requires clarity, persistence, and sometimes a bit of bravery. Or at least the courage to open yet another PDF on “updated technical specifications for structured invoice formats.”

And with that spirit of perseverance, clarity of mission, and absolute refusal to accept nonsense, we dive into this week’s VAT developments. Because if there’s one thing the world of VAT constantly requires, it’s courage.

If you feel courageous, or simply want to stay up-to-date, make sure you visit our website every day: www.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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