Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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EU Council extends VAT split‑payment derogation to June 2029
The EU Council has extended a VAT split-payment derogation through to June 2029, allowing a member state (likely Poland, which has historically operated a mandatory split-payment mechanism) to continue applying this VAT collection method. Under split payment, the VAT portion of a transaction is paid directly into a dedicated VAT account rather than to the supplier, reducing fraud risk. The extension reflects the mechanism's effectiveness in combating VAT fraud while acknowledging it deviates from standard EU VAT Directive rules. Businesses operating in the relevant jurisdiction must continue maintaining compliant split-payment account procedures.
Should You Outsource Your Payroll?
The article examines the decision of whether businesses should outsource their payroll function, weighing cost, compliance, and efficiency considerations. It highlights the complexity of payroll tax obligations in the UK, including PAYE, National Insurance contributions, and auto-enrolment pension requirements, which make accurate processing critical. Outsourcing can reduce the risk of costly errors and penalties from HMRC, ensure up-to-date compliance with changing legislation, and free internal resources. However, businesses must carefully assess provider reliability and data security. The piece ultimately positions outsourcing as a viable option for businesses seeking to manage payroll tax compliance more effectively.
2026 Hungary VAT Guide
A comprehensive 2026 VAT guide for Hungary has been published, covering the key aspects of the Hungarian VAT system. The guide likely addresses VAT rates, registration thresholds, invoicing requirements including the real-time invoice reporting (RTIR) system, the M-sheet reporting obligation, reverse charge rules, and cross-border supply treatment. Hungary applies the standard EU VAT Directive framework with certain national specifics and derogations. The guide serves as a practical reference for businesses established or trading in Hungary, helping them navigate local compliance obligations, filing deadlines, and the requirements of Hungary's advanced digital tax reporting infrastructure.
Opinion on multiple invoices for one transaction
An opinion addressing the VAT treatment of multiple invoices issued for a single transaction. The piece examines whether issuing more than one invoice for the same supply creates compliance risks, potential double-taxation exposure, or conflicts with invoice integrity rules under VAT legislation. It likely considers scenarios such as partial invoicing, advance payments, and corrective documents, exploring how tax authorities may interpret multiple documents referencing one underlying transaction and the administrative and legal risks businesses face when invoice sequences do not clearly map to a single taxable supply.
Governing the Exchange of Tax Data in Digital Public Infrastructure: Law, Rights, and the Protection of Citizens in Data-Driven Systems
This publication examines the legal and rights-based frameworks governing the exchange of tax data within digital public infrastructure systems. It explores how governments collect, share, and use citizen tax data in increasingly automated, data-driven environments, raising questions about privacy, legal protections, and citizen rights. The paper analyzes the intersection of tax administration modernization with data governance principles, highlighting risks of inadequate legal safeguards when tax data flows through digital public infrastructure. It calls for robust regulatory frameworks to protect citizens from potential misuse of sensitive tax information in government-operated digital systems.
CBDT Tightens Scrutiny of Unexplained Income Additions: Fresh Directions Issued on Sections 68 to 69D and Section 115BBE
India's Central Board of Direct Taxes (CBDT) has issued fresh directions tightening scrutiny of unexplained income under Sections 68 to 69D of the Income Tax Act, along with Section 115BBE. These provisions target unexplained cash credits, investments, expenditures, and other assets where taxpayers cannot satisfactorily explain the source of funds. The new directions aim to standardize assessment procedures, ensure consistent application of these sections, and strengthen enforcement against tax evasion through undisclosed income. Section 115BBE imposes a higher flat tax rate on such unexplained income, making compliance critical for taxpayers with unverified financial transactions.
Public finance is feminist terrain
This article from the Tax Justice Network argues that public finance and taxation are fundamentally feminist issues. It explores how tax policy shapes gender equality outcomes, examining how revenue systems and public spending decisions disproportionately affect women. The piece contends that progressive taxation, adequate public funding for care infrastructure, and fair redistribution are essential tools for advancing gender justice. It challenges the notion that tax policy is gender-neutral, highlighting how austerity measures and regressive tax structures entrench inequality. The article frames feminist advocacy as inseparable from demands for fairer, more transparent public finance systems.
Karnataka HC Quashes Tax Demand, Upholds Taxpayer’s Right to Be Heard on GST ITC Claim
The Karnataka High Court quashed a tax demand against a taxpayer, reinforcing the principle of natural justice in GST proceedings. The case centred on an Input Tax Credit (ITC) claim where the tax authority issued a demand without adequately hearing the taxpayer's case. The court ruled that taxpayers have a fundamental right to be heard before adverse orders are passed under GST law. This ruling sets an important precedent for procedural fairness in GST disputes across India, highlighting that tax authorities must follow due process and cannot deny ITC claims without providing taxpayers a proper opportunity to present their arguments.
CBDT Mandates Upload of Foreign Assets and Income Data in AIS and Form 26AS Under AEOI
India's CBDT has mandated the upload of foreign assets and income data into the Annual Information Statement (AIS) and Form 26AS under the Automatic Exchange of Information (AEOI) framework. This directive enhances transparency by ensuring foreign financial data received through international tax cooperation agreements is reflected in taxpayer-facing portals. The move aims to improve compliance monitoring for Indian residents holding overseas assets or earning foreign income, enabling tax authorities to cross-verify self-reported disclosures against internationally sourced data, thereby strengthening India's efforts to combat tax evasion involving offshore assets.
Payroll Software Security Features Every Business Needs
This article discusses security features that businesses should look for in payroll software, covering data encryption, access controls, and compliance capabilities.
QR‑code obligation stays, technical specs still pending
A regulatory update confirming that a QR-code obligation on invoices or tax documents will remain in force, despite technical specifications for implementation not yet having been published by the relevant authority. The article highlights the compliance uncertainty businesses face: the legal mandate exists but practical guidance on how to generate, format, or validate QR codes is still pending. This creates a gap between legal obligation and operational readiness, raising concerns for businesses and software vendors attempting to build compliant invoicing systems ahead of any enforcement deadline.
Plat UK Ltd v HMRC [2026] UKFTT 999 (TC) — luxury‑goods input VAT refused
UK First-tier Tribunal case Plat UK Ltd v HMRC [2026] UKFTT 999 (TC), in which HMRC successfully refused the claimant's input VAT recovery on purchases of luxury goods. The tribunal upheld HMRC's position, likely finding that the expenditure lacked a direct and immediate link to taxable business supplies, or that the purchases were for non-business or private purposes. The case reinforces HMRC's scrutiny of input tax claims on high-value discretionary items and serves as a reminder that VAT recovery on luxury expenditure requires demonstrable business purpose and a clear nexus to taxable activities.
VAT Zero-Rating Denied for Mental Health Facility: “Hospital” Exclusion Upheld
A case or ruling in which VAT zero-rating was denied to a mental health facility because it fell within a statutory exclusion for 'hospitals.' The decision upholds the interpretation that the facility's classification as a hospital-type entity prevents it from benefiting from zero-rated VAT treatment that might otherwise apply to certain healthcare or welfare services. The ruling clarifies the boundary between exempt, zero-rated, and excluded healthcare providers under VAT law, with significant implications for mental health operators structuring their services and managing irrecoverable VAT costs.
Belgium to Transfer Peppol Authority Role to FPS Finance from 2027
Belgium is set to transfer the Peppol Authority role to FPS Finance (Federal Public Service Finance) from 2027, consolidating e-invoicing governance under the country's tax authority. This shift signals a closer integration between Belgium's Peppol network management and its mandatory B2B e-invoicing framework, which came into effect in 2026. By placing oversight with FPS Finance, Belgium aims to streamline compliance, enforcement, and technical standards for electronic invoicing. The move reflects a broader European trend of aligning Peppol infrastructure with national tax administrations to enhance real-time reporting and VAT compliance capabilities.
Why VAT recovery across Europe is harder than expected
An analysis piece examining why businesses find VAT recovery across European jurisdictions more complex and burdensome than anticipated. Key challenges likely include divergent national procedural requirements, strict documentary evidence rules, tight filing deadlines under the EU's 13th Directive or refund mechanisms for non-EU businesses, language barriers, and inconsistent enforcement by member state tax authorities. The article highlights practical obstacles such as invoice format requirements, registration thresholds, and rejection rates, offering guidance or cautionary observations for multinational businesses seeking to reclaim VAT incurred on cross-border European expenditure.
Apply to pay voluntary Class 3 National Insurance contributions for periods abroad
This UK government guidance covers the process for individuals to apply to pay voluntary Class 3 National Insurance contributions for periods spent living or working abroad. Class 3 NI contributions allow individuals to fill gaps in their National Insurance record, which can affect entitlement to the State Pension and other benefits. The guidance outlines eligibility criteria, how to apply, deadlines, and the rates applicable. This is directly relevant to UK expatriates and those who have lived abroad seeking to maintain or complete their NI contribution record for pension purposes.
Sri Lanka: VAT Amendment Act introduces digital services VAT and compliance changes
Sri Lanka has enacted a VAT Amendment Act introducing a digital services VAT regime along with broader compliance changes. The legislation extends VAT obligations to foreign digital service providers supplying services to Sri Lankan consumers, bringing the country in line with global trends for taxing the digital economy. The amendment also introduces compliance updates affecting registration thresholds, filing requirements, and administrative procedures. These changes are set to take effect in 2026, requiring both domestic and international businesses offering digital services to Sri Lankan customers to assess their VAT exposure and registration obligations under the new framework.
E‑Invoicing & E‑Reporting Explained: Structured vs PDF Invoices – Why “PDF by Email” Isn’t a Structured E‑Invoice
This explainer article clarifies the distinction between structured e-invoices and PDF invoices sent by email, emphasizing that PDFs do not qualify as structured e-invoices under modern e-invoicing mandates. Structured e-invoices use machine-readable formats (such as XML or UBL) that enable automated processing, whereas PDFs are essentially digital paper. The article is relevant for businesses preparing for e-invoicing compliance across multiple jurisdictions, highlighting why legacy PDF-by-email workflows must be replaced with compliant structured formats to meet regulatory requirements.
DGFiP clarifies the September 2026 e‑invoicing start‑up approach
France's tax authority DGFiP has issued clarifications regarding the September 2026 launch approach for France's mandatory e-invoicing reform. The guidance addresses the phased rollout strategy and startup procedures for businesses required to adopt the new system. This update is critical for French businesses and their tax and IT teams preparing for compliance with the country's B2B e-invoicing mandate, which requires transactions to flow through certified partner dematerialization platforms (PDPs) or the public invoicing portal (PPF).
Global VAT Guide: July 2026
The July 2026 edition of the Global VAT Guide provides a comprehensive overview of VAT and GST developments across multiple jurisdictions. It covers legislative updates, rate changes, compliance deadlines, and regulatory guidance issued globally during the period. This monthly reference resource is designed to help tax professionals and businesses track indirect tax changes worldwide, encompassing e-invoicing mandates, filing requirement updates, and policy shifts affecting VAT/GST obligations across numerous countries simultaneously.
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