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RESURRECTION
Last week, much of the world quietly (or not so quietly, depending on the presence of chocolate) celebrated Easter. It’s one of those holidays that seems to exist on two very different levels at once. Like a film that children enjoy for the colours and adults for the subtext.
Or with this Newsletter 2.0: it still reflects the posts on VATupdate.com from last week, but more advanced.
At its core, Easter is one of the most significant events in Christianity. It commemorates the resurrection of Jesus Christ, symbolizing renewal, hope, and the triumph of life over death. Historically, it’s tied to the Jewish Passover and follows the lunar calendar. Hence why it insists on moving around the calendar each year like it has somewhere better to be.
But somewhere along the way, Easter picked up some rather unexpected companions.
Enter the Easter Bunny.
Now, from a purely analytical perspective, a rabbit delivering eggs is already a stretch. Rabbits don’t lay eggs. Eggs don’t need delivering. And yet, here we are, enthusiastically embracing a tradition that combines reproductive symbolism from entirely different biological departments.
The Easter Bunny has its roots in German folklore, where an egg-laying hare would judge children’s behaviour (a sort of springtime cousin of Santa Claus, but with fewer logistical challenges). Over time, this evolved into the now-familiar ritual: hiding eggs for children to find.
And what a ritual it is. Children dart around gardens or living rooms, driven by a primal mix of curiosity and competition. The eggs (real or made of chocolate) are hidden just well enough to be found, but not so well that anyone loses interest (or, worse, discovers them in July).
It’s a game of concealment and discovery. Of things being temporarily out of sight, only to reappear, often in slightly better (or at least more colourful) form.
Which, perhaps unsurprisingly, brings us to VAT.
Because if there’s one thing VAT shares with Easter eggs, it’s the art of being hidden.
VAT is, by design, a tax that disappears into the price. It’s there, but not always seen. Built into transactions, embedded in supply chains, quietly passed along from one party to another. Much like an Easter egg tucked behind a sofa cushion, it’s present, just not immediately obvious.
And then comes the moment of discovery.
For businesses, that moment tends to arrive in the form of a VAT Return or, in more dramatic cases, a visit from the tax authorities. Suddenly, what was hidden becomes visible. The neatly concealed layers of input and output tax are brought into the open, examined, and (ideally)balanced.
Sometimes, the result is a pleasant surprise: a refund, like finding an extra chocolate egg you didn’t know was there.
Other times, it’s less delightful: a liability that feels suspiciously like discovering that someone else has already eaten your share.
But perhaps the deeper parallel lies in the rules of the game.
With Easter egg hunts, the rules are usually clear (even if unofficial): no moving the eggs once hidden, no hoarding, and no pretending you didn’t see one just so you can claim it later when competition has thinned.
VAT operates on a similar principle. The rules are there to ensure fairness, neutrality, and a level playing field. But, as with any system involving hidden elements and human behaviour, interpretation plays a role. What is “visible” to one taxpayer may be “hidden” to another. What is “correctly found” in one scenario might be “overlooked” in another.
And just like in an Easter egg hunt, the outcome often depends not just on the rules themselves, but on how well you understand them. And how carefully you look.
So, as the last eggs are consumed and the Easter Bunny retreats for another year, it’s worth reflecting on this curious overlap.
Easter and VAT: In both cases, the real challenge isn’t that things are hidden. It’s making sure we know where and how to find them.
Happy (belated) Easter. And may your VAT positions always be easier to locate than the last egg behind the radiator.
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
- VAT Concepts Explained: Taxable Person & Economic Activity
“Taxable person” and “economic activity” are the core criteria for VAT/GST liability—determining registration, input-tax recovery, and common dispute points—yet their application varies by jurisdiction and misclassification can cause penalties and unrecoverable input tax. 🔗
- VAT Concepts Explained: When Inventory Crosses a Border: Call-Off Stock, Consignment Stock, and Inventory in Motion
The EU’s call-off stock simplification (VAT Directive Articles 17a and 36a) enables cross-border transfer of goods to another Member State for a known VAT-registered customer without immediate VAT registration in the destination state, provided strict identification, documentation, and 12-month call-off conditions are met. 🔗
- April 2026 International VAT Updates: Rate Changes in Austria, Malaysia, Philippines, Poland, Spain, Switzerland
In April 2026, Austria, Malaysia, the Philippines, Poland, Spain, and Switzerland are making or considering VAT/service tax changes—such as Austria’s proposed cut to VAT on basic food, Malaysia’s retroactive service tax reduction, the Philippines’ proposed VAT rate decrease, Poland’s temporary fuel VAT cut, and other related adjustments to manage inflation and policy priorities. 🔗
- Essential VAT Compliance Guide for Etsy Sellers: Avoid Fines and Grow Your Cross-Border Business
The guide explains that while Etsy may handle VAT as a deemed supplier in some places, sellers are responsible for VAT compliance elsewhere—so they must register, charge, collect, and remit VAT in each relevant country to avoid fines, payment blocks, or account suspension. 🔗
- 68 Country Profiles on E-Invoicing, E-Reporting, E-Transport, SAF-T Mandates, and ViDA Initiatives
The post provides an updated (March 17, 2026) overview of 68 countries’ digital tax and logistics frameworks, summarizing their adoption status and details for e-invoicing, e-reporting, e-transport, SAF-T mandates, and ViDA initiatives. For each country, it covers the measures taken, the regulatory framework, and the implications for businesses and compliance, with profiles refreshed to reflect the latest developments. 🔗
- E-invoicing, E-Reporting, fiscalization & technology newsletter week 15/2026
The Week 15/2026 VATupdate.com newsletter covers latest developments in e-invoicing, e-reporting, fiscalization and related technology, with a focus on Ghana’s E‑VAT requirements for real-time invoicing, downtime notification and offline handling, and planned upgrade notices with ERP/POS integration. It also notes Ghana’s move from manual VAT receipt booklets to mandatory electronic VAT receipts via the E‑VAT system. 🔗
- Why Real-Time Tax Engines Fail High-Volume, Low-AOV Businesses and Hurt Unit Economics
Real-time tax engines often fail high-volume, low-AOV businesses because legacy pricing and design are built for fewer, higher-value transactions, making per-order costs, limited flexibility for digital edge cases, and poor high-throughput performance undermine margins and growth. 🔗
- VAT Concepts Explained: News Items & Podcasts Covering the VAT Topics That Matter Most (WIP)
This work-in-progress initiative will gradually expand news and podcast coverage of the “Big 5” core VAT concepts—covering taxable persons and economic activity, VAT scope, what constitutes a supply and consideration, and how grants/penalties/rebates/vouchers are treated to determine VAT applicability and recoverability. 🔗
- RTC Webinar: e-Invoicing in the GCC: A Closer Look (April 21)
The April 21, 2026, RTC webinar “e-Invoicing in the GCC: A Closer Look” will review recent GCC e-invoicing and CTC rollout developments across countries, compare approaches, and share practical steps for businesses to stay compliant while maintaining efficient operations. 🔗
- E-Invoicing Exchange Summit – Dubai, Nov 25-27, 2026 – NEW DATE
The E-Invoicing Exchange Summit in Dubai has been scheduled for Nov 25–27, 2026, with opportunities to propose presentations or partner—contact Alexandra Bayer—while the 2026 agenda (to be confirmed) is available online. 🔗
- Webinar Matthez – VAT & Services: what to secure in 2026 – B2B vs B2C general rule (April 14)
The April 14 Webinar Matthez explains how VAT on services creates the biggest risk—covering territoriality, reverse charge/foreign registration, and evidencing requirements—and what to adjust for 2026 in both B2B and B2C contexts, especially with the upcoming electronic invoicing reform. 🔗
AFRICA
- West African Public Finances: High Dependence on Customs Revenues Faces Growing Risks
West African governments’ heavy reliance on customs duties and import VAT leaves public finances increasingly vulnerable as trade slows and tariff barriers fall, forcing countries to strengthen domestic taxation to offset risks from a large informal sector. 🔗
- GRA Protocols for Tax Invoice Issuance and System Downtime Under Ghana’s E-VAT Regulations
Under Ghana’s E-VAT rules, taxable persons must issue real-time invoices via a certified system, notify the GRA within 24 hours of any downtime, follow GRA recovery/communication protocols to manage offline data and signatures, upload missed transactions once systems are back online, and provide 24-hour notice for planned upgrades with mandatory ERP/POS integration. 🔗
- Kenyan Tribunal Bars KRA From Withholding VAT Credits During Tax Disputes, Easing Cash Flow Strain
Kenya’s Tax Appeals Tribunal has ruled that KRA cannot use Debit Adjustment Vouchers to withhold VAT credits while a tax dispute or objection is pending, easing companies’ cash-flow strain by requiring credits to be handled lawfully until a final decision is reached. 🔗
- VAT Exemption for Insurance Intermediaries Does Not Cover Asset Management Services, Tribunal Rules
The Tax Appeals Tribunal held that VAT exemption for insurance intermediaries applies only to insurance agency/brokerage services and not to asset management services, which remain VAT-liable at 16%. 🔗
- Liberia to Raise Standard GST Rate to 13% from May 2026, Export Rate Unchanged
Liberia will increase its standard GST rate from 12% to 13% starting 1 May 2026, while keeping the export rate at 0% and telecommunications GST at 15%. 🔗🔗
- Malawi Expands VAT to Foreign Digital Services Under 2026/27 National Budget Reforms
Malawi’s 2026/27 budget reforms expand VAT to foreign suppliers of digital services to Malawian consumers, aiming to level the tax treatment of domestic and non-resident providers and tax value generated in Malawi. 🔗
- Morocco Imposes New VAT Rules for Foreign B2C Digital Service Providers Effective June 2026
Starting June 2026, non-resident suppliers of B2C digital services to Morocco must register for VAT through an electronic platform, obtain a tax identity number, and then file quarterly VAT returns while maintaining an electronic service register under Decree No. 2‑25‑862. 🔗
- Namibia’s 2026/27 Budget: VAT Act Amendments to Boost Key Sectors and Modernise Compliance
Namibia’s 2026/27 Budget proposes amendments to the VAT Act to support priority sectors such as agriculture inputs and the creative industry while modernising tax administration through e-invoicing to improve compliance and reduce fraud. 🔗
- Pass-Through Costs: Tax Implications of Reimbursable Expenses for VAT and WHT in Logistics
Pass-through (reimbursable) logistics costs are typically excluded from VAT and treated for tax purposes as third-party expenses—per the Brasoil Tax Appeal Tribunal ruling—so long as the company has proper documentation showing they are genuine client costs not forming part of its own supply. 🔗
- Court Rules Only Parliament Can Raise VAT, Striking Down Minister’s Unilateral Tax Powers
The Western Cape High Court ruled that VAT rate changes can only be imposed or altered by Parliament, striking down the finance minister’s unilateral power to announce immediate VAT increases pending later approval and potentially affecting similar ministerial tax-change provisions. 🔗
- South Africa Clarifies VAT Rules for Agents Importing Goods on Behalf of Non-resident Principals
South Africa’s SARS issued VAT Ruling No. VR 017 clarifying that VAT-registered agents (e.g., art auctioneers) importing goods on behalf of non-resident principals may deduct input VAT on imports if documentation requirements are satisfied. The agent is treated as making a taxable supply of the goods at a specified VAT value. 🔗
- SARS Announces Three New Acts, Including Voluntary E-Reporting for VAT Vendors, Effective April 2026
On 1 April 2026, SARS promulgated three Acts, amending the Value-Added Tax Act and introducing a voluntary e-reporting system for VAT vendors effective April 2026. 🔗
- Togo Expands VAT to Foreign Digital Services Under 2026 Finance Act
Togo’s 2026 Finance Act expands VAT to foreign providers of electronic services, requiring VAT collection and remittance by transaction intermediaries, with further collection/reporting rules to be set by a future finance ministry decree. 🔗
- Uganda Targets Import VAT Base Through New Levies and Import Exemptions in FY 2026/27
Uganda’s FY 2026/27 tax bills include VAT-relevant import measures that grant exemptions from levies and fees on vaccines, medicines, and medical supplies, lowering VAT-linked import costs for essential goods. At the same time, the bills are expected to affect VAT bases indirectly by raising excise and environmental levies on imported products that feed into consumer prices. 🔗
AMERICAS
- Belize advances mandatory e-invoicing under its GST reform agenda
Belize is moving to mandatory e-invoicing for GST-registered businesses under its 2024 GST amendments, to cut tax evasion and improve transparency, with the Belize Tax Service leading the rollout ahead of further technical and timing details. 🔗
- Bolivia Grants Tax Relief on Inputs for Zero-Rated VAT Taxpayers
Bolivia’s National Tax Service (SIN) has announced that taxpayers making zero-rated VAT supplies may now claim tax relief on input costs that are subject to 13% VAT. 🔗🔗
- Lawmakers Debate Proposed Consumption Tax Amid Concerns Over Economic Impact and Resident Burden
Lawmakers debated a proposed phased consumption tax intended to fund infrastructure and energy needs, but critics warned it could burden residents and harm economic competitiveness amid concerns over energy costs, labour shortages, and disaster risks. 🔗
- Quebec Clarifies GST/HST, QST Taxation of Mutual Fund Trailing Commission Payments
Quebec clarified that mutual fund dealer services paid through trailing commissions are subject to both GST/HST and QST. These taxes apply to services provided on or after July 1, and dealers may need to register to charge, collect, and remit them. 🔗
- Ottawa Considers Nationwide GST Cut on New Homes to Boost Housing Market and Affordability
The federal government is discussing a one-year, nationwide GST exemption on new home purchases with provinces and territories to stimulate housing supply and affordability, building on Ontario’s already-agreed sales-tax removal and related municipal support measures. 🔗
- Colombia Proposes Voluntary Correction Regime for Invoicing Errors with Capped Penalties Until April 2026
Colombia’s tax authority proposed a temporary until April 30, 2026, voluntary invoicing-error correction regime that lets eligible taxpayers fix formal invoicing breaches and pay capped penalties (10–1,500 UVT) while excluding issues like unfiled returns, transfer pricing, and validation of tax items. 🔗
- Dominica Extends VAT Relief on Essential Goods Until July 2026 to Ease Living Costs
Dominica has extended VAT relief and import duty waivers on essential goods until the end of July 2026 to reduce the cost of living amid higher global food prices. Approved by Parliament on April 10, 2026, the support—initially introduced in the 2025–2026 budget—targets households, small businesses, and hospitality and will be reviewed in the next budget cycle. 🔗
- Tax Administration Clarifies VAT Application on Financial Services and Commissions
Ecuador’s SRI clarified that VAT at the 15% general rate applies to financial services and related commissions, including fees charged by banks and other financial institutions regardless of the customer’s type or status. The financial entities must charge, declare, and remit VAT as agents of perception. 🔗
- Ecuador Limits Use of Tax Credit Notes to Settle Tax Liabilities
From April–May 2026 Ecuador will cap use of dematerialized tax credit notes to offset tax liabilities at 60% per return, require the remaining balance to be paid via standard methods through SRI’s online channels, while excluding ISD (Foreign Currency Outflow Tax) credit notes from the cap. 🔗
- Indiana Rules Tech Developer Not a Marketplace Facilitator, Not Liable for Auction Sales Tax
The Indiana Department of Revenue determined that a company providing auction software is not a marketplace facilitator and therefore is not liable to collect or remit Indiana sales tax on auction sales conducted by customers using its platform, while remaining responsible for sales tax on its own taxable software sales. 🔗
- Nevada Proposes Sales Tax Rule Changes for Marketplace Facilitators, Including Virtual Currency Definition
Nevada’s Tax Commission has proposed updated sales tax rules for remote and marketplace sellers and facilitators, including new remittance requirements and a defined scope of “virtual currency” as non–legal-tender digital value used for exchange or value storage. 🔗
- Wisconsin Expands Sales Tax Exemption for Machinery Used in Qualified and Contract Research
Wisconsin expanded its sales and use tax exemption for machinery and equipment used exclusively for qualified research to include certain contractors providing contract research services. Contract research services are research performed on a customer’s behalf that would qualify under IRC §41(d)(1) if done by the customer’s employees, including research funded by group members or customers. 🔗
- Colorado: Online Payment Processor Not Deemed Retailer or Marketplace, No Sales Tax Duty
Colorado’s Department of Revenue determined that an out-of-state online payment processor, lacking control over merchants’ e-commerce operations or sales, is not a retailer or marketplace facilitator and therefore has no duty to collect or remit Colorado sales tax. 🔗
- Kentucky Sales Tax 2026: Rates, Nexus Rules, Filing Deadlines, and Exemptions for Businesses
Kentucky’s state sales tax rate is 6% (no local add-ons), with economic nexus triggered when sales exceed $100,000 or 200 transactions in the current or prior calendar year. Businesses must register within 60 days of meeting the threshold and file returns by the 20th of the following month; tax generally applies to tangible goods and certain digital products/SaaS and specified services, with exemptions such as unprepared food for home consumption and prescription and OTC medicines. 🔗
- Maryland Sales Tax: Rates, Nexus, Exemptions, and Filing Requirements Explained
Maryland generally charges a statewide 6% sales tax (no local additions) on most tangible personal property and certain services, including clothing, software, digital goods, and some installation or repair services. Nexus is triggered by physical presence or economic activity (either $100,000 in sales or 200+ transactions annually), and the tax includes specific product and entity exemptions; businesses must register and file/remit using approved methods, with the filing frequency based on their sales volume. 🔗
- North Dakota Sales Tax: Rates, Local Taxes, Nexus, Exemptions, and Filing Requirements for Businesses
North Dakota imposes a 5% state sales and use tax with potential local add-ons, applies it to tangible goods and certain services unless exempt, requires businesses with physical presence or $100,000+ in ND sales to collect/remit (often using exemption certificates for qualified parties), and allows electronic or paper filing of sales tax returns. 🔗
- Illinois GOP Proposes Six-Month Gas Sales Tax Holiday to Ease Pain at the Pump
Illinois House Republicans have proposed a six-month, July 1–December 31 gas sales-tax holiday to cut prices by about 20 cents a gallon, while keeping the motor fuel tax unchanged, as the bill awaits action in the Rules Committee. 🔗
- Overview of Bradley-Burns Uniform Local Sales and Use Tax Law: Key Provisions and Definitions
The Bradley-Burns Uniform Local Sales and Use Tax Law enables local governments to levy sales and use taxes under defined rules and definitions, including exemptions and credits for related taxes and protections for bondholders, along with specific requirements for rate changes and ordinance references during a set revenue exchange period. 🔗
- US imposes new Section 232 tariffs on pharmaceuticals and revises tariffs on aluminium, steel, and copper
The US has enacted new Section 232 tariffs on patented pharmaceuticals (with a 100% baseline, subject to potential reductions for certain sourcing/onshoring and pricing commitments) and updated Section 232 tariffs on aluminium, steel, and copper by largely raising base rates to around 50% while lowering some derivatives to 25% and introducing new calculation standards and a de minimis threshold. 🔗🔗
- Wisconsin Expands Tax Exemption to All Residential Electric Vehicle Charging Stations
Wisconsin has expanded its EV charging tax exemption to cover all residential electric vehicle charging stations, regardless of charger type, rather than only Level 3 chargers. 🔗
- How IRS and States Share Sales Tax Data—and What It Means for Your Business
The IRS and states increasingly share sales-tax-related data under formal agreements and safeguards to improve tax administration, including spotting discrepancies between federal and state reporting. As states and even other states collaborate through channels like the Multistate Tax Commission, businesses face higher compliance risk if their multi-state sales tax reporting isn’t accurate and consistent. 🔗
- Sales/Use Tax Quarterly Update for Second Quarter of 2026
The EY Sales and Use Tax Quarterly Update for the second quarter of 2026 summarizes key legislative, administrative, and judicial developments affecting sales and use tax, focusing on nexus, tax base and exemptions, technology, and compliance/controversy. 🔗
ASIA-PACIFIC
- Government Announces Additional Fuel Excise Cut and GST Windfall Return for Motorists and Businesses
The government announced a further temporary fuel excise and duty reduction plus a GST revenue “windfall” return to provide added cost relief to motorists and businesses, including lower fuel excise for three months and reduced fuel tax credits from 1 April 2026. 🔗
- ATO Urges Businesses to Review GST Turnover, Update Reporting Methods Before July 2026
The ATO has urged businesses to review and update their GST turnover and reporting methods before July 2026—especially those over AUD 10 million (full BAS and accruals) and over AUD 20 million (monthly GST)—because the ATO will automatically adjust some companies’ GST obligations from 1 July 2026 if they haven’t. 🔗
- Bangladesh May Require VAT Registration for Business Bank Accounts to Expand Tax Net
Bangladesh’s NBR is considering requiring VAT registration for businesses to open or keep business bank accounts in order to broaden the VAT tax net, though critics warn it may burden compliance and deter banking while others urge focusing on direct tax collection. 🔗
- Rethinking VAT Reform in Bangladesh: Addressing Core Issues Beyond Single Rate Debates
Bangladesh’s VAT reform has yielded little tax revenue gain because debates over a “single VAT rate” overshadow more crucial, under-addressed reforms—especially strengthening VAT administration—even though most sectors already face the standard 15% VAT. 🔗
- Karnataka High Court: Limitation for GST Refund Mandatory, Delay Condonable Under Writ Jurisdiction
The Karnataka High Court held that the two-year limitation for filing GST refund applications under Section 54 of the CGST Act is mandatory and cannot be condoned by departmental officers, as they lack statutory power to relax the deadline. However, the Court may condone delay in genuine cases under its writ jurisdiction—especially where tax was paid twice or paid under the wrong head and no adequate remedy exists under the CGST Act. If the delay is condoned, the proper officer is also granted an appropriate extension to use other applicable provisions. 🔗🔗🔗
- DGFT Tightens Certificates of Origin Rules, Mandates Automated Verification and Authorised Issuance
DGFT has tightened India’s Certificates of Origin framework by restricting issuance to DGFT-authorised agencies, requiring automated verification using matching invoice numbers on certificates and shipping bills, while retaining exporter self-certification for recognized Status Holder manufacturers. 🔗
- Madras HC: VAT Pre-deposit via ITC Must Be Refunded in Cash Under GST Section 142(6)
The Madras High Court held that VAT pre-deposits made using ITC must be refunded in cash under GST’s Section 142(6), and departmental circulars cannot deny this statutory right. 🔗
- CBIC Issues FAQs to Streamline IGST Refund Process for Exporters and Address Common Errors
The CBIC issued FAQs to simplify the IGST refund process for exporters by clarifying that the Shipping Bill acts as the refund application when documents are correctly filed, and by highlighting eligibility limits (only for exports where IGST was paid, not under LUT/Bond). It also provides guidance on required IEC and validated bank details and stresses accurate matching between GST and Customs data, with common error codes and fixes, plus monitoring steps via the ICEGATE portal. 🔗
- Japan’s Food Tax Waiver Faces Year-Long Delay Due to Cash Register Challenges
Japan’s planned two-year consumption-tax suspension on food may be delayed by up to a year due to technical cash register challenges, potentially weakening the measure’s impact. 🔗
- Kazakhstan to Expand List of Goods Eligible for VAT Offset Method in 2026
Kazakhstan’s Ministry of Energy has proposed that in 2026 the list of imported goods eligible for VAT offset be expanded to include TN VED 8419 40 000 9 distillation/rectification apparatus, with public comments on the draft resolution accepted until April 22, 2026. 🔗
- Malaysia Issues Accelerated Capital Allowance Rules for E-Invoicing Implementation Expenses
Malaysia has introduced accelerated capital allowance rules for residents investing in ICT equipment to implement e-invoicing, offering a 20% initial allowance and 40% annual allowance for qualifying costs. Eligibility is strictly tied to meeting e-invoicing timelines and requirements, with no flexibility. 🔗
- Overview of General Information, Regulatory Environment, Fiscal Devices, and Fiscal Documents
The document outlines general information about the regulatory environment, the relevant fiscal devices, and the fiscal documents involved. It is available for download at https://www.fiscal-requirements.com/documents/1301. 🔗🔗
- Choosing Between MyInvois Portal and API Integration for E-Invoicing: A Comparative Guide
The guide compares MyInvois Portal versus API integration for e-invoicing, recommending MyInvois Portal for manual, small-scale use and API integration for automated, high-volume operations. 🔗🔗🔗
- Briefing document & Podcast: E-Invoicing and E-Reporting in Pakistan
Pakistan’s FBR has introduced a mandatory e-invoicing and real-time e-reporting framework—via the Finance Act 2024 and follow-on regulations—requiring businesses to issue electronic VAT invoices and submit them to FBR’s online platform, with defined scope, technical requirements, timelines, and compliance implications. 🔗🔗🔗
- Pakistan Revises Customs Values for Chlorinated Paraffin Wax Imports from China, Qatar, and Taiwan
Pakistan’s Directorate General of Customs Valuation Karachi has revised customs values for chlorinated paraffin wax imports from China, Qatar, and Taiwan—after stakeholder input and data review—rescinding prior values for Qatar in line with updated market pricing and rising raw material costs. 🔗
- Government Expands VAT Exemption to 2,263 Medicines, Prioritizing Cancer, Hypertension, and Diabetes Drugs
The Philippine government expanded VAT exemptions to 2,263 medicines—especially those for cancer, hypertension, and diabetes—to lower prices of essential drugs and improve access for major causes of death, with reassurances that prices won’t rise until June and supplies remain stable. 🔗
- Senate Bill Proposes Temporary Suspension of Excise Tax to Address Rising Fuel Prices
Senate Bill No. 1982 proposes temporarily suspending the excise tax on fuel to ease rising fuel prices, after earlier VAT suspension measures were removed and the bill’s exact scope and timing remain unconfirmed. 🔗🔗🔗
- Singapore Mandates E-Reporting for All New Voluntary GST Registrants from April 2026
From April 1, 2026, Singapore will require all new voluntary GST registrants to use InvoiceNow for IRAS e-reporting (invoice data submission) with the mandate expanding to all GST-registered businesses by April 2031, while still allowing paper or PDF invoices in transactions. 🔗
- Uzbekistan Updates VAT Deregistration Rules for Income Reporting Errors and Automatic Registration
Uzbekistan clarified that taxpayers automatically VAT-registered due to incorrect income reporting exceeding 1 billion soums may apply electronically to cancel VAT, with the tax authority potentially annulling the VAT certificate retroactively once corrected income falls below the threshold, returning the taxpayer to the turnover tax regime. 🔗🔗
- 80% VAT Refund for Jewellery Businesses in Uzbekistan from 2026 to 2028
From January 1, 2026, to January 1, 2028, Uzbekistan will refund jewellery producers and retailers 80% of the VAT they paid if key conditions are met, with refund applications filed within three months of tax reporting and processed automatically. 🔗
- Fake Documents Used in 2 billion Soum VAT Refund Scheme Uncovered in Tashkent Region
In Chirchiq, Tashkent region, authorities uncovered a scheme using fake contracts and invoices to fraudulently claim 2 billion soums in VAT refunds, resulting in charges against four people and ongoing efforts to determine whether tax officials were involved. 🔗
- National Assembly Considers Reducing Fuel Taxes to Zero Until End of June 2026
The National Assembly is considering temporarily reducing gasoline, oil, and jet fuel taxes to zero until June 30, 2026, with measures to maintain transparency, stabilize supply chains, and prevent speculation. 🔗🔗
EUROPE
- Year-End Adjustments: Impact of Latest ECJ Rulings on VAT and Transfer Pricing in Practice
The ECJ clarified that year-end transfer pricing true-ups between related companies trigger VAT only when they represent consideration for actual, agreed services. In the Belgian–Romanian scenario, payments linked to the subsidiary’s operating margin without any fixed service fee were not treated as VAT-liable solely because they were “transfer pricing adjustments.” The ruling offers practical guidance on when such adjustments create VAT obligations, while a related case (Stellantis Portugal, S.A.) remains pending. 🔗
- 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. 🔗
- Agenda of the ECJ/General Court VAT cases – 2 Judgment, 2 AG Opinions till May 5, 2026
Until May 5, 2026, four key VAT-related proceedings are scheduled—two AG opinions (T-397/25 on VAT adjustments after a business transfer of leased immovable property; T-268/25 on VAT grouping ownership requirements and related issues) and two judgments (T-233/25 on subcontractor VAT adjustment after claim assignment and insolvency; C-544/24 on whether Lithuanian fixed late payment interest complies with EU law). 🔗
- Blog Part 3: ViDA as a Finance Opportunity: Turning Mandatory Digital VAT into Control and Insight
Blog Part 3 argues that while ViDA’s mandatory digital VAT requirements may seem like compliance burdens, CFOs can turn them into a finance opportunity by using e-invoicing and e-reporting to gain greater control and actionable insight. 🔗
- EU Court Upholds Use of Foreign Export Prices in Customs Valuation Under Residual Method
The EU General Court held that, under the residual method, EU customs authorities may use lawfully obtained export price information from third countries to determine customs value. It confirmed that such foreign data counts as “data available in the customs territory of the Union” and can be relied on in post-clearance audits when doubts exist about the declared transaction value and the importer fails to provide sufficient proof. 🔗
- EU Commission Seeks Feedback on Revising E-Invoicing Directive for Public Procurement
The European Commission opened a public consultation until 10 June 2026 to revise the 2014 e-invoicing directive for public procurement, aiming to enhance harmonisation and interoperability while cutting administrative burdens ahead of the broader ViDA push for mandatory cross-border e-invoicing by 2030. 🔗
- Germany and France Announce ZUGFeRD 2.5 E-Invoicing Format with Gross Invoice Support for 2026
Germany and France will release the ZUGFeRD e-invoicing format version 2.5 on May 20, 2026, adding support for gross invoices while aligning with updated EN 16931 code lists and EU e-invoicing standards. 🔗
- Albanian Government Introduces New VAT Scheme to Boost Farmers’ Income and Support Agriculture
The Albanian government is set to launch a new VAT scheme that will return 10% of the invoice value to farmers’ accounts for direct sales starting mid-year to boost farmers’ income and support agriculture. 🔗
- Belgium to Launch Major VAT Chain Reforms and New Provisions Account from May 2026
From 1 May 2026, Belgium will replace its current VAT credits/debts account with a new VAT provisions account, streamline VAT payment management by abolishing the VAT holiday scheme, introduce new VAT bank account numbers (without accepting incoming payments from April 2026), and limit refunds on periodic returns to box 72 while requiring remaining credits to be claimed via the new MyMinfin account. 🔗
- Submission Procedures for Public Customs Warehouse Type II: Continued Use of PLDA and Mandatory IDMS
Under the Public Customs Warehouse Type II regime, operators may continue submitting placement declarations via PLDA until further notice, but all clearance declarations must be submitted through IDMS where IDMS applies, and PLDA may be used for new placement declarations for the same regime while operators must keep accurate inventory records. 🔗
- Belgium Announces Deadlines for Hospitality Sector Fiscal Cash Register Upgrades by April 2026
Belgium’s tax authority has set deadlines for hospitality businesses to upgrade their certified fiscal cash registers so that transactions are recorded using the upgraded devices by April 2026. 🔗
- Bosnia and Herzegovina Mandates E-Invoicing and Real-Time Transaction Reporting for All Businesses
Bosnia and Herzegovina has passed a new Fiscalization law requiring all businesses to adopt a phased, software-based real-time e-invoicing and transaction reporting system, using ETRS and a Central Fiscalization Platform, with different requirements for B2B/B2G versus B2C transactions and penalties for non-compliance. 🔗
- Plenković: Government Prepares Temporary VAT Cut as Last Resort Against Rising Energy Prices
Croatia’s government is preparing a possible temporary VAT reduction—made by bi-weekly adjustments—as a last-resort response to rising energy prices. Since EU rules limit VAT to no less than 15%, the measure will only be used if energy prices rise significantly, after other steps like reduced excise duties and distributor margins. 🔗🔗🔗
- Tax and Customs Authorities Intensify Fiscalization Inspections During Easter, 71% Violations Detected
During the Easter holidays, the Tax and Customs Administration conducted enhanced inspections of 330 taxpayers and found irregularities in 234 cases (71%). Legal penalties were applied, and work bans were issued to 23 taxpayers with the most serious violations (7 already enforced, 16 pending). The campaign is expected to curb the grey economy, protect the state budget, and ensure fair business conditions. 🔗
- Cyprus Lowers VAT on Residential Electricity to 5% from May 2026 to March 2027
Cyprus will cut VAT on electricity supplied to private residences, public assistance recipients, and thermal energy storage systems from 8% to 5% for the period May 1, 2026, through March 31, 2027, under Decree K.D.P. 167/2026. 🔗
- Zero VAT on Meat, Poultry, and Fish Brings Positive Impact, Says Cyprus Agriculture Minister
Cyprus’s agriculture minister says the zero VAT on meat, poultry, and fish is positively affecting shoppers and supermarkets, keeping supplies and prices stable despite disease outbreaks and supporting Easter slaughter numbers. 🔗
- Cyprus Implements DAC8 Crypto Reporting Rules, First Submission Due June 2027
Cyprus has adopted DAC8 crypto reporting rules effective January 1, 2026, requiring crypto-asset service providers to report information starting with a first submission due June 30, 2027, for the 2026 calendar year under the EU’s AEOI framework. 🔗
- EPPO Probes €137 Million Tax Fraud Involving Czech Companies Importing Goods from China
The EPPO is investigating a suspected €137 million tax fraud in which nine Czech companies allegedly manipulated the import of Chinese goods to evade taxes between 2017 and 2018, with raids carried out in Czechia and Slovakia. 🔗
- VAT Refund Application for Non-EU Foreign Persons Based on Reciprocity in the Czech Republic
Non-EU foreign persons can claim a VAT refund in the Czech Republic under reciprocity rules if their home country offers similar refunds and they make only eligible taxable supplies (with limited exceptions) during the claim period, excluding specified non-recoverable expenses. 🔗
- VAT and Excise Duties on Import and Sale of Investment Wine Stored in Customs Warehouse
Danish authorities confirmed that investment wine imported from England and stored in a customs warehouse was exempt from import VAT and excise duties on entry, and that no VAT or excise duties were due on later sales of the wine while it remained stored there. 🔗
- Packaging Tax on PP Non-Woven Bags Upheld by Danish Tax Appeals Board (Dissenting Opinion)
A Danish tax appeals board (with a dissent) upheld a packaging tax assessment on the sale of PP non-woven carrying bags in late 2020, ruling they met the criteria for taxable plastic bags and were not shown to qualify for any exemption. 🔗
- Danish Nemhandel Reference Implementation 2.3.0 Released with Peppol Support and Enhanced Security
The Danish Business Authority has released Reference Implementation version 2.3.0, adding Peppol support, updated certificate handling, and the latest mandatory schematrons, with the updated source code and self-updating guidelines published for DEMO use. 🔗🔗
- Fine for Tax and VAT Evasion in Taxi Business Reduced to 5,000 DKK After Law Change
After a law change effective January 1, 2024, a taxi driver convicted of tax and VAT evasion for undeclared income (amounting to 31,010 DKK) had his fine reduced from 30,000 DKK to a standard 5,000 DKK. 🔗
- Study Finds Lowering Food VAT Rarely Benefits Consumers or Reduces Prices in Small Economies
A University of Tartu literature review finds that cutting VAT on food in small economies like Estonia often fails to lower consumer prices or improve finances, with benefits tending to accrue to businesses rather than consumers and only limited reductions for some staple items. 🔗
- VAT Reverse Charge on Construction‑Related Services Requires Proof of Subcontracting
VAT reverse charge for construction-related services applies only when the taxpayer can provide verifiable proof of a genuine subcontracting agreement and a direct link between the invoiced services and the specific immovable-property construction project, including reliable evidence of supplier invoice payment. 🔗
- VAT Treatment of a One‑Off and Isolated Advisory Service
The CAA Paris held that a one-off, independently performed advisory service for consideration can constitute an “economic activity” and thus a VAT-liable transaction under broad taxable person rules aligned with Article 9 of the EU VAT Directive, regardless of its occasional or unique nature. 🔗
- Denial of the VAT Margin Scheme Due to the Absence of an Expressly Formalised Option
The VAT margin scheme under Article 268 CGI may be refused when the seller has not expressly and documented the option under Article 260(5° bis) in the notarised deeds, and—after a merger—input VAT recovery may also be denied if the absorbing company cannot prove the claimed VAT was not already deducted. 🔗
- Assessment of the Actual Place of Dispatch of Goods: Evidence Based on Customs and Accounting Records
The place of supply for VAT is determined by where the goods are actually and effectively dispatched, so a foreign seller may be charged French VAT only if authorities prove dispatch from France using evidence like customs and accounting records, which the taxpayer can overturn with consistent documentation. 🔗
- Germany Considers Major VAT Reform: Higher Standard Rate, Lower Reduced Rate, 0% on Essentials
Germany is considering a major VAT overhaul by raising the standard rate (to 21–22%), cutting the reduced rate (to 4%), and potentially making essential groceries VAT-free (0%) to better protect lower-income households and shift taxes toward consumption amid higher costs. 🔗
- Germany Updates Peppol and ZUGFeRD E-Invoicing Standards for Enhanced Interoperability and Cross-Border Adoption
Germany has updated its Peppol, KoSIT/ZR, and ZUGFeRD e-invoicing standards—adding standardized settlement-based invoicing, an English ZR framework for cross-border use, and forthcoming ZUGFeRD 2.5 enhancements—to improve interoperability and simplify implementation. 🔗🔗🔗
- Place of Supply for Services Between Head Office and Branch: BFH Judgment of December 4, 2025
In its judgment of December 4, 2025, the BFH held that services ordered through a German liaison office are not deemed to be supplied in Germany if they are used for the economic activity at the company’s main seat in a third country. 🔗
- VAT Exemption for Pre-Import Deliveries of Goods (§ 4 No. 4b UStG) – BMF Letter April 2026
The BMF April 2026 letter states that deliveries of goods made before their import into Germany are exempt from German VAT under § 4 No. 4b UStG, as long as the goods have not yet been released for free circulation. The exemption is intended to simplify VAT treatment for goods entering the EU but still subject to special customs procedures. The VAT Application Decree (UStAE) is amended to clarify that deliveries of non-EU goods under special customs procedures remain VAT-exempt if the recipient (or their agent) ends the procedure—for example by importing the goods or re-exporting them. The exemption applies only while the goods are still not free-circulation released. 🔗
- Hungary Clarifies VAT Reverse Charge Rules for Construction and Installation Services
Hungary clarified that VAT on construction and installation services from January 1, 2024, is generally subject to reverse charge only when the service is linked to real estate activities that require an official permit or notification, with specific rules governing applicability. 🔗
- Tax Authority to Audit Retail Stores in Bács-Kiskun County, Focusing on Receipts and Employee Reporting
In April and May, Hungarian tax and customs officials will audit retail businesses across parts of Bács-Kiskun County, emphasizing correct receipt/invoice handling, proper use of online cash registers, and accurate employee reporting, with surprise weekend and after-hours checks. 🔗
- Conference Urges Removal of VAT on Wool Products to Boost Sustainability and Rural Livelihoods
The European Wool Day Conference in Co. Kerry urged the EU to remove or reduce the 23% VAT on wool to improve sustainability and competitiveness versus synthetic fibres. It also called for taxing non-sustainable textiles, reclassifying wool so it’s not treated as waste under EU rules, and redirecting value back to farmers to protect rural livelihoods and agricultural heritage amid an aging farming population. 🔗
- Italy Updates E-Invoicing Specs: New Format Mandatory from May 15, 2026
Italy’s Revenue Agency issued e-invoicing specifications v1.9.1, making the new format mandatory from May 15, 2026, and updating controls, accreditation for WS/SFTP, and coding rules (including AltriDatiGestionali for sports workers), along with changes to recipient code limits. 🔗
- Paper Invoices Required for Taxable Medical Device Sales: New Guidelines and Exceptions Explained
The Italian Revenue Agency clarified that the electronic invoicing ban for healthcare applies only to regulated health professionals covered by specific health rules; regulated professionals must issue paper invoices for VAT-exempt medical services, while others must use electronic invoicing. It also extends the electronic invoicing requirement to taxable medical device sales by entities that must report to Italy’s Health Card System (e.g., pharmacies and opticians), with the AIC challenging its exclusion. 🔗🔗🔗
- New VAT Rules for Barter Transactions Apply to Contracts Signed or Renewed After January 1, 2026
Barter transactions will follow new VAT rules based on “incurred cost” instead of “normal value” only for contracts signed or renewed on or after January 1, 2026, while pre-2026 contracts are protected under transitional regimes. 🔗🔗
- Holding Companies: Limited VAT Obligations for Exempt Share Transfers Without Invoice Issuance
Sales of exempt shares generally require no invoice or receipts, and whether a holding company has limited VAT obligations depends on its actual activities—potentially placing it outside VAT or as a VAT taxpayer. 🔗
- Impact of Missed or Insufficient VAT Payments on the 2026 Annual VAT Return
Missed or insufficient periodic VAT payments complicate the 2026 annual VAT return (especially the VL section), because the annual declaration must reconcile differences between periodic settlements and actual paid amounts. Taxpayers can remedy this by paying the overdue VAT with penalties and interest or after receiving tax authority notices, and the administration can detect gaps because unpaid settled taxes are visible and LIPE communications are regularly filed. 🔗🔗
- Reduced-Rate Diesel Reserved for Local Public Transport Operators, Not Private Passenger Services, Rules Court
The Italian Supreme Court held that reduced excise duty on diesel is available only to operators of legally defined public local transport services, not to private passenger transport operators—even when they provide mixed public-private routes. 🔗
- Lithuania Updates VAT Registration, Deregistration and Small Business Scheme Procedures
Lithuania has replaced its prior VAT registration, deregistration, and Small Business Scheme procedures with Order No. VA‑25 (31 March 2026), consolidating updated rules and approving revised application forms and certificate issuance procedures. 🔗
- North Macedonia Extends Temporary 10% VAT Reduction on Fuel Products Until April 20, 2026
North Macedonia has extended a temporary 10% VAT reduction on specified fuel products until April 20, 2026, previously set to end on April 6, 2026. Sellers of motor fuels and lubricants in specialized shops must continue applying the reduced VAT rate in their pricing and invoices. 🔗🔗
- Malta Narrows VAT Exemption for Gambling and Betting Services Effective October 2026
Malta will limit the VAT exemption for gambling and betting services effective October 1, 2026, keeping VAT relief only for specified low-risk and approved occasional events while applying the standard 18% VAT to other services. 🔗🔗🔗
- Malta Updates VAT Guidance on Electronically Supplied Services
Malta’s MTCA has updated VAT guidance on electronically supplied services—clarifying the ESS scope, potentially reclassifying certain sportsbook offerings as ESS based on supply method, and applying changes from 1 October 2026 with a transition period for affected businesses. 🔗
- Farmers to Receive VAT Refunds Within a Month; Diesel Excise Compensation Also Planned
Farmers in Moldova will receive VAT refunds within a month under a new simplified legal framework, alongside planned diesel excise-duty compensation funded from the reserve fund, to ease liquidity pressures from higher fuel and logistics costs. 🔗
- Dutch Knowledge Group Withdraws Position on VAT Correction for Private Use of Company Cars
The Dutch Kennisgroep Auto has withdrawn its earlier VAT correction guidance for private use of company cars, now aligning with Supreme Court rulings that require corrections to reflect actual private use rather than an inflexible forfaitary amount. 🔗
- VAT Rules Make Open Access Publishing More Expensive for Universities and Researchers
In the Netherlands, new VAT interpretations require open-access journal publishing to be charged at 21% instead of the 9% rate for subscriptions, raising costs for universities and researchers and complicating the shift to open access. 🔗
- Reduced VAT Rate Not Applicable to Magic Truffles, Amsterdam Court Confirms
The Amsterdam Court confirmed that magic truffles are not subject to the reduced VAT rate because they are not considered food products and are not consumed for nutritional purposes. The decision considered both their composition and intended use, so the general VAT rate applies. 🔗🔗
- End VAT Subsidy on Alcoholic Beverages in Composite Transactions: A Call for Legislative Action
The Dutch VAT system can unintentionally subsidize alcoholic beverages in “main/ancillary” combined transactions by applying the VAT rate of the main service to the whole, and lawmakers are urged to amend the legislation to end this reduced-rate treatment. 🔗
- No Appeal Against Dutch VAT on German Race Training at Zandvoort
A German company that organized car racing events at Zandvoort in 2019 invoiced Porsche with German VAT, but a Dutch tax inspector assessed additional Dutch VAT and reduced the company’s input tax. The company will not lodge a cassation appeal against the VAT assessment. 🔗
- Bill Implements EU VAT in the Digital Age Directive and Includes Maintenance Amendments
The bill implements parts of the EU’s ViDA (Directive 2025/516) VAT rules for the digital age and, after Council of State feedback, adds expanded explanatory material and clarifies that it also includes specified maintenance amendments. 🔗
- Digital VAT Refunds: New Mandatory Process for Retailers and Shoppers in the Netherlands
The Netherlands is introducing a mandatory digital VAT-refund process where retailers report transactions through MijnDouane or an intermediary and shoppers file claims via the “NL Customs VAT” app with automated location and passport validation at exit, with paper refunds phased out after 31 December 2025 (until 31 March 2026). 🔗🔗
- Asset management services provided to pension funds subject to VAT
The District Court of Noord-Holland held that VAT’s financial exemption did not apply to X NV’s asset management services for a pension fund during the asset payment (distribution) phase because X NV failed to prove the participants bore investment risk or that the fund was comparable to a defined contribution scheme for neutrality, and the service was indivisible. 🔗🔗🔗🔗
- Norway Expands VAT to Remotely Supplied Services Used in Norway Effective July 2026
Starting 1 July 2026, Norway will extend VAT to remotely supplied services used in Norway (including by non-residents) under a reverse-charge mechanism based on the destination principle, with expanded input VAT deduction for services used outside Norway. 🔗
- No KSeF E-Invoicing Obligation for Foreign VAT Taxpayers Without a Fixed Establishment in Poland
Foreign VAT taxpayers registered in Poland without a fixed establishment are not obliged to use KSeF for e-invoicing (though they may voluntarily), and structured invoices are made available by agreement rather than being mandatory. 🔗🔗🔗
- Three Equivalent Forms of VAT Invoice: Paper, Electronic, and Structured Formats Are All Legal
A VAT invoice may legally be issued in any of three equivalent forms—paper, mutually agreed electronic formats, or legislator-required electronic/structured formats such as KSeF—with structured electronic invoicing sometimes mandatory and multiple forms for the same transaction allowed. 🔗🔗
- Deferred Payments Between Related Parties: Tax Risks and Arm’s Length Transaction Requirements
In related-party transactions, tax authorities may scrutinize deferred payments (especially long-term deferrals without interest) to assess whether the arrangement is arm’s length for VAT purposes, requiring a solid legal and analytical basis since VAT or taxable income cannot be adjusted merely due to non-arm’s length terms. 🔗
- Temporary Reduction of Excise Duties and VAT on Petrol and Diesel Fuels Enacted
The legislation temporarily reduced excise duties on petrol, diesel, and biocomponents (to PLN 1,239 per 1,000 liters for petrol and PLN 880 per 1,000 liters for diesel/biocomponents) and lowered VAT on these fuels to 8%. 🔗
- Defining Organized Parts of an Enterprise and VAT Exclusion Under Polish Law: Key Issues and Disputes
Under Polish VAT law, whether a sale is treated as the disposal of an organized part of an enterprise (excluded from VAT) depends on meeting all three separateness tests—organizational, financial, and functional—so misclassifying the transaction can lead to major VAT deduction or charging errors for both parties. 🔗
- Ministry of Finance Explains JPK_VAT and KSeF Markers for Sales and Purchase Records
The Ministry of Finance clarified that JPK_VAT sales and purchase records using KSeF depend on three markers—“NrKSeF” for invoices with a KSeF number at submission, “OFF” for invoices issued during KSeF failure without a number (with no later correction), and “BFK” for invoices issued outside KSeF (including before it was mandatory or during total failure). 🔗🔗🔗🔗
- Romania Plans Digital Receipts and Cash Register Reform to Streamline Tax Compliance and Reporting
Romania is reforming its tax reporting by requiring digital receipts with QR codes, unique IDs, encryption, and automatic electronic transmission to authorities—along with new daily XML reporting and IT integrations—starting with updated systems by November 1, 2026. 🔗
- When is the 0% VAT Rate Applied to Sanatorium Accommodation Services?
From July 1, 2022, to December 31, 2030, sanatorium accommodation services qualify for a 0% VAT rate when the property is classified as accommodation under Federal Law No. 132-FZ and the applicable government regulations (with the classification updated for continuity starting January 1, 2025). 🔗
- Serbia Publishes Updated Consolidated VAT Regulations as of April 2026
Serbia’s Tax Administration published an updated consolidated VAT regulations text on April 2, 2026, reflecting rules in effect as of April 1, 2026. 🔗
- International Operation Uncovers €137 Million Customs and Tax Fraud in Slovakia and Czech Republic
Operation “PODLIMIT” uncovered €137 million in customs and VAT fraud in Slovakia and the Czech Republic, involving underreported import values and delivery locations for goods shipped from China in 2017–2018. Authorities seized evidence in both countries and reported at least €24.1 million in customs duties and €113.3 million in VAT evaded across nearly 4,000 shipments. 🔗
- Tax Office Can Register VAT Groups Without Consent from 2026: What Businesses Need to Know
Starting January 1, 2026, the tax office may register VAT groups ex officio without the involved businesses’ consent, aiming to curb VAT evasion while increasing compliance obligations and potential sanctions for qualifying financially, economically, and organizationally connected entities. 🔗
- Slovak Republic Plans to Raise VAT Registration Threshold to EUR 83,000 from July 2026
Slovakia plans to increase the VAT registration threshold to EUR 83,000 effective 1 July 2026, allowing qualifying small businesses to deregister with transitional penalty relief and limiting processing/fines for applications and non-registrations based on the new limit. 🔗
- Spain Approves Mandatory B2B E-Invoicing System for Large Businesses
Spain has approved mandatory B2B e-invoicing for domestic transactions starting April 20, 2026, for large businesses (annual turnover over €8 million). Invoices must follow required formats and be exchanged through private accredited platforms or the public system run by the Spanish Tax Agency, with interoperability required. Businesses must report acceptance/rejection and payment status, plus related updates, within four days, and tax authorities will have access to invoice and payment data to enforce compliance and monitor payment practices. 🔗🔗
- Spain Proposes New OSS VAT Rules for eCommerce, Effective January 2027 Under ViDA Reforms
Spain has approved a draft amendment to its VAT law under the EU’s ViDA reforms, introducing changes effective 1 January 2027. The Union OSS scheme will be extended to cover certain services sold to non‑EU consumers. Non‑EU businesses using OSS must appoint a Spanish tax representative to claim input VAT refunds tied to e‑commerce. Transitional rules will apply for call‑off stock and energy supplies until July 2028. The draft was open for public consultation until 23 December 2025 and has not yet progressed further. 🔗
- VAT on Sale of Unfinished Buildings: Rehabilitation Status and Mortgage Cancellation Determine Tax Treatment
The DGT determines that a commercial company selling an unfinished building is acting within its business activity, so the sale is generally subject to VAT. The key factor for whether it is VAT-exempt or taxable is the buyer’s intended rehabilitation: if the buyer continues the rehabilitation, the sale is subject to VAT and is not exempt; if rehabilitation is not continued, it is generally exempt unless the exemption is waived. Additionally, reverse charge can apply when the buyer retains part of the purchase price to cancel/pay off the seller’s mortgage after the transfer, as this is treated as a property transfer with withholding of consideration. 🔗
- Supreme Court: No Reduced VAT for Children’s Sports Courses Unless for Social Assistance Purposes
The Supreme Court held that children’s sports courses are not eligible for the reduced 10% VAT rate unless they are authentic social assistance services protecting vulnerable minors or youth, so general courses for under-25s remain subject to the standard 21% VAT. 🔗
- VAT Rates for Football Match Tickets: 10% for Primera RFEF, 21% for Copa del Rey
Football match tickets are taxed at 10% VAT for Primera RFEF (treated as non-professional/amateur), while Copa del Rey tickets carry 21% VAT because professional teams regularly participate. The VAT rate depends on both the competition’s classification and whether professional teams actually take part. 🔗
- Spanish Government Maintains Fuel VAT Cut Despite EU Warning Over European Law Compliance
Spain says it will keep its temporary cut to fuel VAT from 21% to 10% to tackle energy-price pressures and support households, despite the European Commission’s formal warning that the reduction breaches EU rules. 🔗🔗
- Sweden Temporarily Cuts VAT on Food and Bottled Water to 6% Until December 2027
Sweden will temporarily cut VAT on food and bottled water from 12% to 6%, effective April 1, 2026, through December 31, 2027. The lower rate excludes tap water and certain alcoholic beverages. 🔗
- Swiss FTA Updates Foreign VAT Refund Rules: New Certificate Requirements for 2026 Applications
The Swiss Federal Tax Administration updated foreign VAT refund procedures, requiring applicants for 2026 to submit a “Certificate of Taxable Status” covering the entire refund period. The certificate must confirm VAT registration throughout that time (or provide the start date), with complete supporting documentation to prevent delays or rejections. 🔗
- Turkey Revises Special Consumption Tax Rates for Gasoline, Diesel, LPG, Propane, and Butane
Turkey’s Revenue Administration updated special consumption tax rates for gasoline, diesel, LPG, propane, and butane via Decision No. 10995’s annex, effective April 8, 2026. 🔗
- Ukraine Appoints New Customs Chief to Bolster Position Ahead of Crucial IMF Talks
Ukraine has appointed Orest Mandziy as head of its State Customs Service to meet IMF reform requirements tied to revenue collection and continued funding. The move comes as Ukraine prepares for crucial IMF talks ahead of a June deadline for conditions to unlock a $700 million tranche. 🔗
- VAT Exemption for International Technical Assistance Projects: Requirements and DPS Position in Ukraine
In Ukraine, VAT on international technical assistance projects is exempt only when the seller keeps a certified copy of the project registration card, the procurement plan, and the supply contract—confirming the project is state-registered and eligible under approved international agreements, consistent with the DPS position. 🔗
- VAT Register Extract: Optional Document or Essential for Counterparty Trust in 2026?
VAT register extracts are optional and provided only on request (tax authorities can’t require them), while VAT registration proof is available and updated daily via the State Tax Service portal—since VAT registration certificates and special tax regime certificates were abolished by law. 🔗
- Ukraine Proposes VAT on Low-Value Imports via Electronic Platforms, Effective January 2027
Ukraine has proposed collecting VAT on low-value (under €150) cross-border imports through electronic marketplaces/platforms rather than postal operators starting January 1, 2027. 🔗🔗
- VAT Exemption for Ukrainian-Language Audiobooks: Tax Implications and Electronic Distribution Rules
Operations supplying, preparing, producing, and distributing Ukrainian-language audiobooks (excluding erotic content) are exempt from VAT, and the same VAT exemption extends to electronic services that provide digital copies or access to these audiobooks. Source: news.dtkt.ua. 🔗
- HMRC to Introduce Multi-Factor Authentication for Agent Sign-In Starting April 2026
Starting April 7, 2026, HMRC will require tax agents to use multi-factor authentication during sign-in, prompting them with a notification first and later requiring an access code, while leaving authentication for Transaction Engine API, SOAP APIs, and the 18-month authorisation process unchanged. 🔗
- Manufacturer’s Payments to UK Government Not Price Reductions for VAT on Medicine Supplies, Tribunal Rules
The Upper Tribunal held that a medicine manufacturer’s repayments to the DHSC for VAT purposes were not price reductions because they lacked the required direct link to the original supply consideration and could not be treated as refunds where later consumer supplies were zero-rated. 🔗
- Upper Tribunal Rules NHS Pricing Payments Don’t Generally Reduce VAT on Medicines Supplies
The Upper Tribunal held that under NHS pricing schemes, pharmaceutical companies’ payments to the DHSC generally do not reduce VAT on medicine supplies because they are too remote to be treated as retrospective price reductions for VAT purposes. 🔗
- Court Rules Grant Funding for Education Is Consideration for VAT: Colchester Institute v HMRC
The Court of Appeal held that government grant funding received by Colchester Institute for its education and vocational training services is consideration for VAT purposes. The court found a sufficiently direct link between the grants and the services provided to students, even though the funding was not allocated to specific supplies. It distinguished the facts from the Rayon d’Or case and clarified how the “direct link” requirement applies. 🔗🔗🔗
- VAT and Crowdfunding: What Funding Types Are Taxable and When?
VAT on crowdfunding depends on the consideration received—donations are typically not VATable, while payments for goods, services, or royalties are generally subject to VAT, whereas investments and loans for financial returns are usually outside VAT, with UK VAT registration required once VATable crowdfunding receipts exceed £90,000 in any 12-month period (and VAT-registered businesses can generally reclaim related input VAT). 🔗
MIDDLE EAST
- NBR Releases Updated VAT Healthcare Guide Version 1.2 on March 31, 2026
The National Bureau for Revenue (NBR) released an updated VAT healthcare guide, version 1.2, on March 31, 2026. The update is published as reflected in a report cited by kpmg.com. 🔗
- Israel to Lower Invoice Allocation Number Thresholds Further in 2026 for Real-Time Tax Compliance
Israel will further lower the real-time invoicing allocation-number threshold from NIS 20,000 in 2025 to NIS 10,000 from January 2026 and NIS 5,000 from June 2026 to strengthen tax compliance under the Economic Efficiency Law 2023, requiring businesses to update their invoicing systems. 🔗
- Oman Launches International Finance Centre With 50-Year Tax Incentives for Eligible Businesses
Oman has launched an International Financial Centre in Muscat offering eligible businesses up to 50 years of income tax and VAT incentives under a 2026 Royal Decree, effective January 13, with further eligibility regulations to follow. 🔗
- UAE’s New 5-Year VAT Refund Rule: Why Delayed Claims Threaten Business Cash Flow
The UAE’s new five-year VAT refund deadline effective January 1, 2026, means businesses must actively claim excess VAT credits (with limited transitional relief) or risk permanently losing them—making timely, well-documented filings crucial to protect cash flow and liquidity. 🔗
- Six Essential Steps for UAE Businesses to Comply with the New VAT ‘Should Have Known’ Rule
Starting January 1, 2026, UAE businesses must proactively prevent denied input VAT claims under the “should have known” rule by verifying suppliers, profiling and monitoring risk, flagging red signals, strengthening contracts, automating checks, and keeping thorough documentation. 🔗
- Comarch Featured on EmaraTax: UAE e-Invoicing Integration and Compliance for July 2026 Deadline
Comarch was featured on EmaraTax as an authorized provider to support UAE e-invoicing integration and onboarding testing ahead of the July 2026 B2B/B2G compliance deadline, helping automate and validate invoice data via Peppol standards and secure transmission to the Federal Tax Authority. 🔗
- UAE Cabinet Decision on Violations and Penalties for Electronic Invoicing System Compliance
The UAE Cabinet has issued a decision setting definitions, administrative penalties, and enforcement timing for violations of compliance with the UAE Electronic Invoicing System under Federal Decree-Law No. 28 of 2022, excluding voluntary users. 🔗
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