Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Karnataka HC Grants Relief on Common GST Notices, GSTR-2A/GSTR-3B ITC
The Karnataka High Court has granted relief to taxpayers facing common GST notices related to discrepancies between GSTR-2A and GSTR-3B for Input Tax Credit (ITC) claims. The court's ruling addresses procedural and substantive issues around how tax authorities issue bulk or common notices to multiple taxpayers for ITC mismatches. This decision provides significant relief to businesses challenging the validity of such notices, reinforcing taxpayer rights and clarifying the evidentiary weight of auto-populated GSTR-2A data versus self-declared GSTR-3B filings in ITC dispute proceedings under India's GST framework.
Guidance: Approved offshore reporting funds
HMRC guidance on approved offshore reporting funds, which are funds that have elected to report their income to investors rather than distributing it, allowing UK investors to be taxed on reported income at income tax rates rather than capital gains rates. This is relevant to UK personal and corporate taxpayers holding interests in offshore funds, ensuring proper tax treatment and compliance with UK tax rules on offshore investment vehicles.
Treasury’s Top Tax Official to Depart
The U.S. Treasury's top tax official is departing, signaling a significant leadership change within the department responsible for U.S. tax policy, rulemaking, and international tax negotiations. The departure may have implications for ongoing regulatory guidance, Treasury's stance on OECD Pillar Two negotiations, and domestic tax rule development. Leadership transitions at Treasury's tax division can influence the pace and direction of tax guidance, enforcement priorities, and U.S. positions in international tax forums.
Gibraltar Introduces Transaction Tax: New Indirect Tax Framework Under the UK–EU Agreement
Gibraltar is introducing a new Transaction Tax as part of an indirect tax framework aligned with the UK–EU Agreement. This new levy represents a significant shift in Gibraltar's tax landscape, replacing or supplementing existing indirect tax mechanisms to comply with obligations arising from post-Brexit arrangements between the UK and EU. The framework is expected to impact businesses operating in or through Gibraltar, requiring adaptation to new compliance requirements. The Transaction Tax reflects broader efforts to harmonize Gibraltar's fiscal regime with European indirect tax standards, particularly relevant given Gibraltar's unique geopolitical position under the UK–EU deal taking effect from 2026.
Temporary Repatriation Facility (TRF): how it works and what to include in your 2025-26 tax return
This article explains the UK's Temporary Repatriation Facility (TRF), a regime allowing individuals with foreign income or gains previously sheltered under the remittance basis to bring those funds into the UK at a reduced tax rate. The piece covers how the TRF operates, eligibility criteria, the applicable tax rates, and practical guidance on what taxpayers need to include in their 2025-26 self-assessment tax returns. It is aimed at UK-resident non-domiciled individuals considering whether to take advantage of the facility before it closes, helping them understand reporting obligations and planning considerations.
Webinar Fiscal Solutions: The Evolution of Czech Fiscalization: Welcoming EET 2.0 Fiscalization (July 23)
A webinar hosted by Fiscal Solutions focuses on the evolution of Czech fiscalization, specifically the introduction of EET 2.0 (Electronic Records of Sales). The session covers updates to the Czech fiscal framework, compliance requirements for businesses operating point-of-sale systems, and what the new iteration of the EET mandate means for retailers and service providers. EET 2.0 represents a significant regulatory update to how Czech businesses must electronically report sales transactions to tax authorities, making this relevant for companies navigating Czech VAT and fiscalization compliance obligations.
Venture Capital Schemes Manual
HMRC's Venture Capital Schemes Manual provides detailed guidance on UK tax-advantaged investment schemes including the Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS), Venture Capital Trusts (VCT), and Social Investment Tax Relief (SITR). These schemes offer significant income tax and capital gains tax reliefs to investors in qualifying smaller companies, and the manual covers eligibility conditions, compliance requirements, and administrative procedures for both investors and companies.
Impact assessment: Child Benefit information for Self Assessment tax return
An HMRC impact assessment examining the integration of Child Benefit data into the Self Assessment tax return process. This relates to the High Income Child Benefit Charge (HICBC), which requires taxpayers earning over £50,000 to repay some or all Child Benefit received. The assessment evaluates the administrative and compliance implications of pre-populating or sharing Child Benefit information within Self Assessment returns to improve accuracy and reduce taxpayer burden.
Guidance: Country-by-country: service availability and issues
HMRC guidance on the availability and known issues with the Country-by-Country (CbC) reporting service, used by large multinational enterprises to submit CbC reports to HMRC. CbC reporting is a key OECD BEPS transparency measure requiring multinationals to disclose revenue, profits, taxes paid, and other indicators across jurisdictions. This service update page helps businesses and tax professionals monitor system status and plan submissions accordingly.
Guidance: Check if a business holds Authorised Economic Operator status
UK government guidance on how to verify whether a business holds Authorised Economic Operator (AEO) status. AEO status is a internationally recognised quality mark indicating a business's role in the international supply chain is secure and its customs controls and procedures meet EU and UK standards. This is relevant for customs and trade compliance purposes, allowing traders, customs authorities, and supply chain partners to confirm AEO certification, which can facilitate smoother customs procedures and reduced checks at borders.
AP HC: Single SCN and Composite GST Order Cannot Be Given for Multiple Tax Periods
The Andhra Pradesh High Court has ruled that a single Show Cause Notice (SCN) and a composite GST order cannot be issued covering multiple tax periods simultaneously. The court held that tax authorities must issue separate notices and orders for each distinct tax period, ensuring procedural fairness and allowing taxpayers adequate opportunity to respond to period-specific allegations. This ruling has significant implications for GST enforcement practices in India, curtailing the practice of bundling multiple periods into one proceeding and strengthening taxpayer due process rights under the GST adjudication framework.
Guidance: Digital platform reporting: service availability and issues
UK HMRC guidance covering service availability and known issues relating to the digital platform reporting service. Under DAC7-aligned UK rules, digital platforms are required to report seller income data to HMRC. This operational guidance helps platform operators and their advisers stay informed of system outages, technical issues, or service interruptions affecting submission of mandatory reports, ensuring compliance with the digital platform reporting obligations introduced to improve tax transparency on gig economy and marketplace income.
Guidance: Cross-border arrangement reporting: service availability and issues
UK HMRC guidance on service availability and issues for the cross-border arrangement reporting service, which relates to the UK's mandatory disclosure rules (MDR) aligned with the OECD DAC6 framework. This service is used by intermediaries and taxpayers to report potentially aggressive or abusive cross-border tax arrangements. The guidance alerts users to technical outages or disruptions affecting the reporting portal, helping ensure timely compliance with mandatory disclosure obligations that target tax avoidance structures involving multiple jurisdictions.
Invoice Issued Outside KSeF Still Deductible for Corporate Income Tax
Polish tax authorities have clarified that invoices issued outside the mandatory KSeF (Krajowy System e-Faktur) structured invoicing platform remain deductible for corporate income tax purposes. This ruling provides important relief for businesses during the transition period to mandatory KSeF compliance, confirming that a technical failure to issue invoices through the official e-invoicing system does not automatically disqualify the associated costs from CIT deductibility. The distinction between VAT compliance obligations under KSeF and income tax deductibility rules is a key takeaway for Polish taxpayers.
Uganda Tax Appeals Tribunal Rejects URA’s Treatment of VAT/Income‑Tax Variances (Ericsson AB)
Uganda's Tax Appeals Tribunal ruled against the Uganda Revenue Authority (URA) in a case involving Ericsson AB, rejecting the URA's approach of using discrepancies between VAT returns and income tax returns as automatic evidence of additional taxable income or undeclared sales. The tribunal found that VAT and income tax regimes operate under different rules, and variances between the two do not inherently indicate tax evasion or underreporting. The decision is significant for multinational companies operating in Uganda, clarifying the evidentiary standards the URA must meet in such assessments.
VAT provisions for drink Deposit Return Schemes (DRS)
This article examines how VAT rules apply to Deposit Return Schemes (DRS) for drink containers, where consumers pay a deposit at purchase and reclaim it upon returning the bottle or can. The VAT treatment of these deposits is complex, requiring analysis of whether the deposit constitutes consideration for a supply, how refunds are treated, and the point at which VAT becomes due or recoverable. The article explores guidance and provisions across jurisdictions, helping businesses and retailers understand their VAT obligations when operating or participating in DRS programmes.
Belgium Restricts the “Non‑Transfer of Own Goods” Regime for Temporary Cross‑Border Movements
Belgium has introduced restrictions to the 'non-transfer of own goods' simplification regime, which allows businesses to move goods temporarily across borders without triggering a deemed supply or call-off stock rules. The Belgian tax authorities are tightening conditions under which this regime applies for temporary cross-border movements, impacting businesses that regularly transport goods between Belgium and other EU member states for processing, repair, or exhibition. Companies relying on this VAT simplification measure must review their supply chain arrangements to ensure continued compliance under the updated Belgian rules.
Hungary set to keep current VAT return M‑sheet reporting
Hungary is set to retain its current VAT return M-sheet reporting system, which requires detailed transaction-level data to be submitted alongside VAT returns. The M-sheet captures invoice data above certain thresholds, functioning as a real-time reporting mechanism embedded within the VAT return process. This decision signals regulatory continuity for businesses operating in Hungary, meaning no imminent changes to compliance workflows or reporting formats. Companies already adapted to the M-sheet requirements can maintain existing systems and processes without disruption, though ongoing monitoring of any future amendments to Hungarian VAT reporting obligations remains advisable.
Simplified DANFE Type 2 introduced (NT 2026.003 v1.00)
Brazil has introduced a Simplified DANFE Type 2 under Technical Note NT 2026.003 v1.00. DANFE (Documento Auxiliar da Nota Fiscal Eletrônica) is the printed auxiliary document accompanying Brazil's electronic fiscal notes (NF-e). This new simplified format streamlines the auxiliary document's layout and data requirements, likely aimed at reducing administrative burden for certain transaction types. The update forms part of Brazil's ongoing evolution of its comprehensive eInvoicing infrastructure, and businesses issuing NF-e documents in Brazil will need to assess technical system updates to ensure compliance with the new DANFE Type 2 specification.
MDDP Webinar: B2B Reclassification into Employment: Dispute, Penalties and Tax Impact (VAT & Personal) (July 15)
MDDP is hosting a webinar on July 15 addressing the reclassification of B2B contractor relationships into employment in Poland. The session covers the tax implications of such reclassifications, including VAT consequences when a previously VAT-registered independent contractor is deemed an employee, personal income tax impacts, and potential penalties arising from disputes with tax authorities. The topic is increasingly relevant as Polish tax authorities scrutinise self-employment arrangements. The webinar targets businesses and advisers navigating the legal, tax, and social security risks associated with contractor-to-employee reclassification.
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