Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Gauhati HC: ITC Can’t Be Refused to Bona Fide Purchaser for Seller’s Failure to File GST Returns
The Gauhati High Court ruled that input tax credit (ITC) cannot be denied to a bona fide purchaser solely because the seller failed to file GST returns. The court held that a genuine buyer who has completed a legitimate transaction should not bear the tax burden arising from the seller's non-compliance. This ruling reinforces protections for honest taxpayers under India's GST framework and has significant implications for businesses facing ITC reversals due to supplier defaults, clarifying that tax authorities must establish the purchaser's knowledge or involvement in the seller's non-compliance before denying credit.
Luxembourg Moves to Extend Mandatory E-Invoicing to Domestic B2B
Luxembourg is advancing legislation to extend mandatory e-invoicing requirements to domestic B2B transactions. The move aligns Luxembourg with broader EU trends toward structured digital invoicing and real-time reporting. The proposed extension would require businesses operating domestically to issue and receive electronic invoices in a standardized format, expanding beyond existing mandates. Practitioners should monitor implementation timelines and technical specifications as the regulatory framework develops. This represents a significant compliance shift for businesses operating in Luxembourg, requiring updates to invoicing systems and internal processes ahead of any enforcement deadline.
Spain’s mandate: structured invoices, platform exchange, and payment transparency
Spain's e-invoicing mandate requires businesses to issue structured electronic invoices, exchange them via approved platforms, and enhance payment transparency. The regulation mandates use of standardized formats such as Factura-e or equivalent, with exchange through certified platforms ensuring traceability. Payment status reporting obligations add a layer of financial transparency aimed at reducing fraud and late payments. Businesses must adapt their ERP and invoicing systems to comply. The mandate represents one of the more comprehensive e-invoicing frameworks in the EU, combining invoice structure, platform intermediation, and payment lifecycle reporting into a single regulatory regime.
Gambia Approves E-Invoicing System for VAT and Other Taxes
Gambia has approved the implementation of an e-invoicing system covering VAT and other taxes, marking a significant step in the country's tax administration modernization. The system is designed to improve compliance, reduce tax evasion, and enhance real-time visibility for the Gambia Revenue Authority. By digitizing invoice issuance and capture, the mandate aims to broaden the tax base and improve audit capabilities. Businesses operating in Gambia will need to integrate with the approved e-invoicing infrastructure. The development reflects a growing trend of African nations adopting digital tax administration tools to strengthen revenue collection.
United Arab Emirates: FTA issues VAT guidance on digital currency and life insurance
The UAE Federal Tax Authority (FTA) has issued new VAT guidance covering the treatment of digital currencies and life insurance products. The guidance clarifies how VAT applies to transactions involving cryptocurrencies and digital assets, as well as the VAT treatment of life insurance policies in the UAE. This regulatory update is significant for businesses operating in the fintech, crypto, and insurance sectors, providing clearer compliance obligations under the UAE VAT framework. Practitioners and businesses dealing with digital currency exchanges or life insurance products will need to review their VAT positions in light of the FTA's updated guidance.
Supreme Court: Section 74 Cannot Be Invoked Without Proof of Fraud or Fake ITC
India's Supreme Court ruled that Section 74 of the GST Act, which deals with tax evasion through fraud or suppression of facts, cannot be invoked without concrete proof of fraud or use of fake input tax credit. The judgment establishes that tax authorities must demonstrate clear evidence of fraudulent intent before applying the stricter provisions and extended limitation periods under Section 74. This decision limits the scope of the provision and protects taxpayers from arbitrary invocation of fraud-related penalties, setting an important precedent for GST enforcement and litigation across India.
Gig Economy Workers Beware How You Are Taxed in Canada: CRA Audit Risks, Creator Income, AI Income, and GST/HST Obligations
Canadian gig economy workers, including content creators and AI-assisted income earners, face significant tax obligations and CRA audit risks. The article outlines how income from platforms, digital content, and AI-generated revenue is taxable as business income under Canadian law, requiring accurate reporting on personal tax returns. GST/HST registration obligations arise once earnings exceed the $30,000 small supplier threshold. The CRA is increasingly targeting gig workers through third-party data matching and platform reporting. Workers must track expenses carefully and understand self-employment tax rules to remain compliant and avoid penalties.
Luxembourg Formalises Mandatory B2B E-Invoicing over a Peppol Four-Corner Network
Luxembourg has formally legislated mandatory B2B e-invoicing using the Peppol four-corner network model. The regulation establishes a structured framework requiring businesses to exchange electronic invoices through accredited Peppol access points, aligning Luxembourg with broader EU digital reporting initiatives. The mandate sets out technical standards, compliance timelines, and obligations for both senders and receivers of invoices. This formalisation marks a significant shift for Luxembourg businesses, requiring system upgrades and connectivity to the Peppol network infrastructure ahead of the implementation deadline.
Belgium Approves Dual Near Real-Time VAT E-Reporting for 2028
Belgium has approved a dual near real-time VAT e-reporting regime set to take effect in 2028. The system will require businesses to submit structured transaction data to tax authorities in near real-time through two complementary reporting channels, enhancing VAT compliance monitoring and reducing fraud. The framework builds on Belgium's existing mandatory e-invoicing infrastructure and aligns with EU ViDA (VAT in the Digital Age) objectives. Businesses will need to adapt their ERP and accounting systems to meet the new dual-stream reporting requirements ahead of the 2028 deadline.
Bad Debts and “Pass-Through” Items – Proof and Invoicing Matter
This article examines VAT treatment of bad debts and pass-through items, highlighting that proper documentation and invoicing are critical for businesses seeking VAT relief or recovery. It explores the evidentiary requirements tax authorities impose when a supplier claims a bad debt VAT adjustment, and clarifies how pass-through costs must be invoiced to preserve correct VAT treatment. Errors in invoicing methodology or insufficient proof can result in denied VAT recovery or unexpected VAT liabilities, making procedural compliance as important as substantive entitlement.
Delhi HC Declines Plea Against 18% Tax on Diagnostic Services, Directs Matter to GST AAR
The Delhi High Court has declined to entertain a petition challenging the 18% GST levy on diagnostic services, instead directing the petitioner to approach the GST Authority for Advance Rulings (AAR). The court's decision channels the dispute through the prescribed statutory mechanism rather than allowing direct judicial intervention. This ruling is significant for the diagnostics and healthcare sector, where providers have contested the GST classification and applicable tax rates on their services. Practitioners advising healthcare clients should note that AAR remains the appropriate first forum for resolving GST rate classification disputes before escalating to higher courts.
Press Release: In-House Tax Forum welcomes Belgium’s VAT e-reporting step — and urges a move to supplier-only reporting
The In-House Tax Forum has issued a press release welcoming Belgium's decision to introduce VAT e-reporting obligations, marking a significant step in the country's digital tax compliance journey. However, the Forum urges Belgian authorities to adopt a supplier-only reporting model rather than requiring both buyers and sellers to submit transaction data, arguing this would reduce administrative burden on businesses. The position highlights ongoing debate across Europe about the optimal design of e-reporting mandates, as Belgium joins other EU member states implementing real-time or periodic digital VAT reporting frameworks.
TN Rice Millers Seek Removal of 5% GST on Rice Ahead of Upcoming Council Meeting
Tamil Nadu rice millers are lobbying for the removal of the 5% GST on rice ahead of an upcoming GST Council meeting. The industry argues the tax burdens producers and consumers of a staple food commodity. This represents an active tax policy advocacy effort targeting a specific GST rate change, with potential implications for the agricultural and food processing sectors if the Council acts on the request. The outcome could affect GST classifications for rice and similar staple goods across India.
MoS Finance Pankaj Chaudhary: GST Rate on 36 Life-Saving Medicines Reduced to Nil
India's Minister of State for Finance Pankaj Chaudhary confirmed that GST rates on 36 life-saving medicines have been reduced to nil. This is a concrete regulatory update reflecting a GST Council decision with immediate practical impact on the pharmaceutical sector and patients. The rate reduction applies to critical medications, lowering the tax burden on essential healthcare products. Businesses in the pharmaceutical supply chain will need to update invoicing and compliance processes to reflect the new nil-rated status for these medicines.
Nepal: VAT rules introduced for rideshare platforms
Nepal has introduced VAT rules specifically targeting rideshare platforms, establishing compliance obligations for the digital ride-hailing sector. The new guidance clarifies how VAT applies to these services, reflecting a broader global trend of extending consumption tax frameworks to gig economy and platform-based businesses. This development is significant for rideshare operators active in Nepal, as well as for international platforms potentially caught by the rules. Businesses will need to assess registration thresholds, invoicing requirements, and remittance obligations under the updated framework.
Nepal Introduces VAT Rules for Ride-Sharing Digital Platforms
Nepal has introduced VAT rules specifically targeting ride-sharing digital platforms, establishing a regulatory framework for how these services will be taxed. The new rules outline VAT obligations for digital platform operators facilitating ride-sharing services, reflecting a broader global trend of applying consumption taxes to the gig and sharing economy. The measures are set to take effect in 2026, giving platforms time to adapt their compliance systems. This development signals Nepal's effort to modernize its VAT framework to capture revenue from rapidly growing digital marketplace services operating within its jurisdiction.
EU tax authorities increase their focus on data quality
EU tax authorities are intensifying scrutiny on data quality as digital reporting and e-invoicing mandates expand across member states. Tax administrations are leveraging real-time transaction data, SAF-T filings, and e-invoicing streams to detect inconsistencies and trigger audits. Businesses face growing compliance risk if their VAT data, master data, and transactional records contain errors or mismatches. The article highlights that tax authorities are moving from periodic checks to continuous monitoring, placing greater pressure on companies to invest in data governance, tax technology, and automation to ensure accurate and consistent reporting across jurisdictions.
Supreme Court Upholds Allahabad HC Decision Describing GST Registration Cancellation as ‘Economic Death’ of Business
The Supreme Court of India has upheld an Allahabad High Court decision characterizing GST registration cancellation as the 'economic death' of a business. The ruling reinforces judicial protection for taxpayers facing arbitrary or disproportionate GST registration cancellations by tax authorities. The decision sets a significant precedent emphasizing that cancellation of GST registration effectively renders a business non-operational, preventing it from conducting lawful trade. Tax authorities must therefore exercise this power judiciously and with proper justification, strengthening the rights of registered taxpayers against undue administrative action under India's GST framework.
Inland Revenue Reconsults on a Range of “Current GST Issues”
New Zealand's Inland Revenue has opened a second round of consultation on several unresolved GST issues, revisiting proposals from an earlier discussion document. Topics under reconsideration include the GST treatment of certain financial services, mixed-use assets, and cross-border supplies. The reconsultation signals that Inland Revenue is refining its policy positions following earlier feedback from taxpayers and practitioners. This is a meaningful regulatory development for New Zealand businesses navigating GST compliance, particularly those involved in financial services or with complex supply arrangements that fall into grey areas under current rules.
Finance Act 2026 Reshapes VAT — Including Removing Imported Fishing Nets from the Exempt List
An unnamed country's Finance Act 2026 introduces several VAT changes, including the removal of imported fishing nets from the VAT exemption list, signalling a tightening of exemptions on goods imports. The act reshapes the broader VAT framework with multiple amendments affecting rates, exemptions, and the scope of taxable supplies. The fishing nets change illustrates how targeted sectoral adjustments are being made alongside broader structural reforms. Businesses engaged in importation and sectors previously benefiting from exemptions will need to reassess their VAT positions under the updated legislation.
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