Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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HMRC Still Weighing How To Treat Offshore Interest Income
HMRC is still deliberating on the appropriate tax treatment of offshore interest income, creating uncertainty for taxpayers with overseas investments. The UK tax authority has not yet issued definitive guidance on how such income should be classified and taxed, leaving individuals and businesses in a holding pattern. This ongoing review may affect how offshore interest is reported and assessed for UK tax purposes. Taxpayers and advisers are awaiting clarity from HMRC to ensure compliance and proper tax planning around cross-border interest income arrangements.
Hiring Freelancers? How a CRA Audit Can Turn Contractors Into Employees, Costing Businesses Thousands in Back Taxes
Canadian businesses hiring freelancers face significant tax risks if the CRA reclassifies contractors as employees during an audit. Such reclassification triggers liability for unpaid payroll taxes, CPP contributions, and EI premiums, potentially costing thousands in back taxes and penalties. The article outlines key factors the CRA examines to distinguish employees from independent contractors, including control, ownership of tools, chance of profit, and risk of loss. Businesses are advised to review worker agreements, ensure genuine contractor independence, and maintain proper documentation to withstand CRA scrutiny and avoid costly reassessments.
National Insurance Manual
HMRC's National Insurance Manual provides comprehensive guidance on National Insurance contributions (NICs) in the UK, covering rules for employers, employees, and self-employed individuals. The manual addresses NIC rates, thresholds, exemptions, and administrative requirements. It serves as an authoritative reference for payroll professionals, tax advisers, and businesses managing UK payroll obligations. Topics include Class 1, 1A, 1B, 2, and 4 contributions, along with special cases such as directors, expatriates, and specific industry arrangements. This is a key resource for ensuring compliance with UK National Insurance legislation.
VAT Refund 2026 — New Rules for Non-EU Travellers
New rules for VAT refunds for non-EU travellers are set to take effect in 2026, updating the framework governing tax-free shopping schemes across the European Union. These changes affect how non-EU visitors claim VAT refunds on purchases made within EU member states, with potential revisions to eligibility thresholds, digital processing requirements, and approved refund operators. The update is significant for retailers, refund agents, and customs authorities managing the tourist VAT refund process. Businesses operating in the travel retail and hospitality sectors will need to adapt their compliance procedures to align with the revised regulations ahead of the 2026 implementation date.
ECJ & General Court VAT Cases decided in 2026
A comprehensive overview of VAT cases decided by the European Court of Justice (ECJ) and the General Court during 2026, covering key rulings that shape VAT law across EU member states. The article compiles significant judgments addressing issues such as input tax deduction rights, place of supply rules, exemptions, and abuse of law principles. These decisions carry direct implications for businesses and tax authorities throughout the EU, as ECJ rulings set binding precedents on VAT Directive interpretation. Tax practitioners and compliance teams should review the case outcomes to assess their impact on ongoing arrangements and domestic VAT positions.
Comments on T-356/25 (Rapera) – Tax Representatives’ Direct VAT Liability Confirmed; Joint Liability Requires Proportionality
Analysis of ECJ case T-356/25 (Rapera), in which the General Court confirmed that tax representatives can bear direct VAT liability under certain conditions. The ruling clarifies the scope of joint and several liability for fiscal representatives, establishing that while direct liability may be imposed, any joint liability arrangement must respect the principle of proportionality. This decision has significant implications for businesses using tax representatives in EU jurisdictions, particularly for non-established companies relying on fiscal agents for VAT compliance. Tax representatives and their clients should reassess contractual risk-sharing arrangements in light of this proportionality requirement.
Government Removes Tax on Water (Bottled Water Excise Duty Scrapped)
A government has announced the abolition of excise duty on bottled water, removing a tax that applied to packaged drinking water products. The scrapping of this levy reduces the tax burden on consumers and the beverage industry, potentially lowering retail prices for bottled water. The policy change reflects either fiscal relief measures or a recalibration of excise duty priorities. Businesses in the bottled water production, distribution, and retail sectors will benefit from simplified compliance obligations and reduced costs. The article highlights the broader debate around excise taxes on non-alcoholic beverages and their economic and public health implications.
VAT Hot Topics for the Public Sector (§ 2b UStG & E-Invoicing)
This article examines VAT hot topics for the German public sector, focusing on two key issues: the application of §2b UStG, which governs the VAT treatment of public bodies and their transition from the old §2 Abs. 3 UStG regime, and the upcoming mandatory e-invoicing requirements affecting public sector entities. Public authorities must navigate complex rules determining when their activities are subject to VAT, while simultaneously preparing for e-invoicing compliance obligations. The piece provides practical guidance for public sector finance teams on managing both the VAT status transition and the technical implementation of electronic invoicing mandates in Germany.
Input VAT Not Recoverable Without Valid VAT Invoices When Claimed
This article addresses the principle that input VAT cannot be recovered without valid VAT invoices at the time of the claim. It examines the legal and procedural requirements for VAT recovery, emphasizing that businesses must hold compliant invoices to substantiate deduction claims. The piece likely covers relevant case law or regulatory guidance confirming that retroactive or missing invoice documentation is insufficient to support input tax recovery. This is a critical compliance issue for businesses managing VAT deductions, as failure to maintain proper invoicing records can result in disallowed claims and potential penalties.
Form: International Tax: UK-USA Double Taxation Convention (form US-Company UK-REIT)
This HMRC form relates to the UK-USA Double Taxation Convention, specifically for US companies receiving income from UK Real Estate Investment Trusts (REITs). It enables eligible US corporate entities to claim treaty relief on property income dividends distributed by UK REITs, reducing or eliminating UK withholding tax obligations. The form is part of the bilateral tax treaty framework designed to prevent double taxation on cross-border income flows between the UK and the United States, ensuring US investors in UK REITs are taxed appropriately under the convention's provisions.
EPPO Cracks Down on €46.9M VAT Carousel Fraud Network (Greece, Bulgaria, Cyprus, Czechia)
The European Public Prosecutor's Office (EPPO) has dismantled a VAT carousel fraud network responsible for approximately €46.9 million in losses, involving coordinated operations across Greece, Bulgaria, Cyprus, and Czechia. Carousel fraud typically involves chains of transactions where goods are repeatedly bought and sold across EU borders, with fraudsters claiming VAT refunds on taxes never actually paid. The operation highlights cross-border enforcement cooperation within the EU and EPPO's growing role in combating Missing Trader Intra-Community (MTIC) fraud, which remains a significant threat to EU member states' tax revenues.
NYSBATS Report on NYC’s Pied-à-Terre Tax
The New York State Bar Association Tax Section (NYSBATS) has released a report examining New York City's proposed pied-à-terre tax, which would impose a levy on non-primary residential properties owned by non-residents. The report analyzes the tax's structure, legal feasibility, and potential revenue implications for the city. A pied-à-terre tax targets luxury secondary homes held by wealthy individuals who do not primarily reside in NYC, raising questions around property valuation, enforcement, and constitutional considerations under state and local tax law.
Update – VAT Rates on Different Goods and Services
This article provides an updated reference guide to VAT rates applied across different categories of goods and services. It likely consolidates recent changes to standard, reduced, and zero rates across multiple jurisdictions, serving as a practical compliance resource for businesses navigating VAT obligations. Such rate updates are relevant for pricing, invoicing, and return accuracy. The piece reflects ongoing legislative activity by governments adjusting VAT rates in response to economic conditions, inflationary pressures, or policy shifts, making it a useful tool for tax professionals monitoring cross-border VAT compliance.
Minn. Tax Court Right On $108M Building Value, Justices Told
The Minnesota Supreme Court is being urged to uphold a Tax Court ruling regarding the assessed value of a $108 million building. The case centers on property valuation methodology and whether the lower court correctly determined the taxable value of the commercial property. The outcome could have significant implications for property tax assessments in Minnesota, potentially affecting how large commercial real estate assets are valued for tax purposes. Appellants argue the Tax Court applied the correct valuation standards, while the case highlights ongoing disputes between property owners and tax authorities over fair market value determinations.
The “Registration Unit” Under EET 2.0 Fiscalization
This article explains the concept of the 'Registration Unit' within the Czech EET 2.0 fiscalization framework, the updated electronic sales registration system. EET (Elektronická evidence tržeb) requires businesses to report cash and card transactions in real time to tax authorities. The Registration Unit refers to the hardware or software component used to generate and transmit fiscal data. EET 2.0 introduces updated technical and regulatory requirements for these units, impacting retailers and service providers. The article is relevant for businesses operating in the Czech Republic needing to ensure compliance with the revised fiscalization mandate.
Online Rummy Loss Cannot Be Taxed as Gross Winnings: Hyderabad ITAT Deletes ₹3.54 Crore Addition
The Hyderabad Income Tax Appellate Tribunal (ITAT) ruled that losses from online rummy cannot be disregarded when calculating taxable winnings. The tribunal deleted a ₹3.54 crore addition made by tax authorities who had taxed gross winnings without offsetting losses. The ruling clarifies that net winnings, not gross receipts, form the correct basis for taxation in skill-based online gaming. This decision has significant implications for how online gaming platforms and players report income under Indian personal income tax law, particularly amid evolving regulatory treatment of online gaming taxation in India.
Foreign Purchases and VAT Refund: How to Recover Tax Paid in Another Country
This article explains how individuals and businesses can reclaim VAT paid on purchases made in foreign countries. It outlines the procedural steps for cross-border VAT refund claims, including eligibility criteria, required documentation, submission deadlines, and the relevant EU and non-EU refund mechanisms such as the EU VAT Refund Directive (2008/9/EC) for EU businesses and the 13th Directive for non-EU claimants. The piece serves as a practical guide for travellers and businesses seeking to recover input tax incurred abroad, highlighting common pitfalls and jurisdictional differences in refund processing timelines.
No Form 10B? ITAT Delhi Clarifies: Charitable Trust Cannot Be Taxed on Gross Receipts Alone
The Delhi Income Tax Appellate Tribunal (ITAT) clarified that a charitable trust's failure to file Form 10B (audit report) does not automatically expose its entire gross receipts to taxation. The tribunal held that procedural non-compliance cannot override substantive entitlement to exemptions under Indian income tax law for registered charitable trusts. Tax authorities cannot treat gross receipts as taxable income solely due to a missing form. The ruling reinforces a taxpayer-friendly interpretation of compliance requirements, distinguishing procedural defaults from substantive eligibility for tax-exempt status under Indian law.
Statutory guidance: Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020
This statutory guidance provides reference documents for the Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020, which govern temporary suspensions of import duty rates in the UK following Brexit. The documents specify which goods qualify for suspended tariff rates, effectively reducing import duties to zero or lower levels for certain products where domestic supply is insufficient. This framework supports UK businesses reliant on imported inputs by lowering customs costs, and is maintained and updated periodically to reflect evolving trade and supply chain needs post-EU Exit.
EU Commission Explains How the New EUR 3 Customs Duty for Low Value Goods Will Be Calculated
The EU Commission has issued guidelines explaining how the new EUR 3 flat-rate customs duty on low-value goods will be calculated when it takes effect in 2026. This measure targets the surge in low-value imports, particularly from e-commerce platforms, which currently benefit from the customs duty exemption for consignments below EUR 150. The guidelines clarify the calculation methodology, ensuring businesses and customs authorities understand compliance requirements. This reform is part of the EU's broader effort to modernize customs rules and create a level playing field between EU and non-EU retailers selling to European consumers.
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