Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Additional VAT Assessment for Private Use of Company Cars Upheld, but Penalty Reduced
A tax authority has upheld an additional VAT assessment relating to the private use of company cars, confirming that such personal use constitutes a taxable supply subject to VAT. However, the associated penalty imposed on the taxpayer was reduced, suggesting partial mitigation of the compliance failure. The case highlights the continuing enforcement focus on company car VAT adjustments, where businesses must account for output VAT on the private use element. It serves as a reminder for employers and fleet operators to properly track and report private vehicle usage for VAT purposes.
Poland Proposes Free E-Receipt App to Replace Traditional Cash Registers
Poland is proposing to introduce a free government-provided e-receipt application that would replace traditional cash registers for certain businesses. The initiative is part of Poland's broader digital tax administration modernization strategy, aiming to reduce compliance costs and improve VAT reporting accuracy at the point of sale. The app would enable real-time transaction recording and reporting to tax authorities, potentially integrating with Poland's existing KSeF e-invoicing infrastructure. The proposal represents a significant shift in how small businesses and retailers would meet their fiscal documentation and VAT compliance obligations.
Office-to-Hotel Conversion Does Not Create a Newly Manufactured Building for VAT Purposes
A ruling clarifies that converting an office building into a hotel does not constitute the creation of a newly manufactured building for VAT purposes. This distinction is significant because VAT treatment differs between new constructions and converted properties, affecting whether the sale or lease of the converted building qualifies as a taxable supply or falls under VAT exemptions. The case highlights the importance of understanding construction and conversion definitions under VAT law, particularly for real estate developers and investors undertaking repurposing projects who must carefully assess their VAT obligations and recovery positions.
RO e-Factura & RO e-TVA: 2026 rules tighten
Romania is tightening its e-invoicing and e-VAT reporting rules for 2026 under the RO e-Factura and RO e-TVA systems. The updated regulations introduce stricter compliance requirements for businesses operating in Romania, reinforcing mandatory structured invoice submissions through the national platform. The tightening of rules signals Romania's continued push toward real-time digital tax reporting and greater tax authority oversight. Businesses must review their invoicing workflows and ERP systems to ensure full compliance with the updated mandates, as non-compliance risks penalties under the stricter enforcement framework.
Amazon updates Fulfilled by Merchant (FBM) requirements — Germany & UK 2026
Amazon is updating its Fulfilled by Merchant (FBM) requirements for sellers operating in Germany and the UK in 2026. These changes have VAT implications for marketplace sellers, as compliance with FBM rules affects how VAT obligations are allocated between Amazon and third-party merchants. Sellers must ensure their VAT registrations, invoice issuance, and reporting obligations align with the updated requirements in both jurisdictions. The changes reflect ongoing efforts by major e-commerce platforms to ensure VAT compliance across their seller networks following digital marketplace VAT legislation in the EU and UK.
KSeF 2026 — Five Common Mistakes When Issuing Structured Invoices
Poland's KSeF (Krajowy System e-Faktur) mandatory e-invoicing system launches in 2026, and this article identifies five common mistakes businesses make when issuing structured invoices under the system. Errors include incorrect field mapping, improper handling of corrections, missing mandatory data elements, timing issues with invoice submission, and misunderstanding schema requirements. These mistakes risk non-compliance and potential penalties. Businesses and their tax and IT teams must rigorously test their invoicing systems and processes ahead of the KSeF rollout to ensure structured invoices meet the National e-Invoice System's technical and regulatory specifications.
Madras HC: Council Has No Authority to Validate GST Notifications Issued Without Prior Approval
The Madras High Court has ruled that the GST Council does not have the authority to retrospectively validate notifications that were issued without its prior approval. The judgment challenges the procedural legitimacy of certain GST notifications, asserting that proper Council sanction is a prerequisite before such notifications can have legal force. This ruling has broad implications for the validity of past GST directives issued outside the mandated approval process and could prompt reviews of notifications challenged on similar procedural grounds across India.
KP asks Centre to defer tax exemption withdrawal in Malakand, merged districts
The Khyber Pakhtunkhwa (KP) provincial government has requested the federal government to defer the withdrawal of tax exemptions in the Malakand division and newly merged tribal districts. These regions have historically benefited from special tax concessions to stimulate economic development in underprivileged areas. KP authorities argue that premature removal of these exemptions could undermine investment and economic activity in already fragile economies. The request reflects ongoing tensions between provincial priorities and federal revenue mobilization efforts, highlighting the broader challenge of balancing regional development incentives against Pakistan's need to broaden its tax base.
World Bank delegation briefed on PRA reform agenda
A World Bank delegation was briefed on the reform agenda of the Punjab Revenue Authority (PRA), Pakistan's provincial tax body responsible for services taxation. The briefing likely covered PRA's modernization initiatives, compliance improvements, broadening of the tax base, and digital transformation efforts. The World Bank's engagement suggests potential technical or financial support for revenue administration reforms in Punjab. Such reform agendas typically encompass improvements to VAT/GST on services, taxpayer registration, audit capabilities, and technology-driven enforcement, underlining international interest in strengthening subnational tax administration in Pakistan.
Maritime Task Force reforms boost customs efficiency, trade facilitation
Pakistan's Maritime Task Force has implemented reforms aimed at boosting customs efficiency and trade facilitation under the Federal Board of Revenue (FBR). The initiative focuses on streamlining customs procedures at ports, reducing clearance times, and improving compliance mechanisms for importers and exporters. The reforms are part of broader efforts to modernize Pakistan's customs administration, curb smuggling, and enhance revenue collection through better border management. Improved coordination between maritime authorities and customs officials is expected to facilitate legitimate trade while strengthening enforcement against illicit goods, contributing to FBR's revenue targets.
Guidance: Joint and several liability — repeated insolvency and non-payment — JAS/FS2
HMRC guidance on joint and several liability notices for repeated insolvency and non-payment (JAS/FS2). This measure allows HMRC to hold directors and other persons connected to companies with a history of tax avoidance, evasion, or phoenixism jointly and severally liable for a company's tax debts. It targets individuals who repeatedly use insolvency to avoid paying tax liabilities, making them personally responsible for outstanding amounts owed to HMRC. The guidance outlines the conditions under which such notices can be issued and the rights of those affected.
Gujarat HC: Delay in Form GST DRC-04 Does Not Justify GST Refund on Voluntary Tax Payment
The Gujarat High Court ruled that a delay in issuing Form GST DRC-04 does not entitle a taxpayer to a refund of voluntarily paid GST. The court examined whether procedural delays by tax authorities in acknowledging voluntary payments could be used as grounds to claim a refund. The judgment reinforces that voluntary tax payments made by taxpayers cannot be reclaimed simply due to administrative delays in processing acknowledgment forms, upholding the principle that self-admitted tax liabilities remain binding regardless of procedural lapses on the part of the GST authorities.
UK VAT on Marketplace Sales: HBS Enterprises Ltd v HMRC and the Deemed Supplier Rules Explained
This article examines the UK VAT tribunal case HBS Enterprises Ltd v HMRC, focusing on the deemed supplier rules that apply to online marketplaces. Under UK VAT legislation introduced post-Brexit, marketplaces like Amazon and eBay are treated as the deemed supplier for VAT purposes when facilitating sales by overseas sellers. The case clarifies how HMRC applies these rules, the obligations placed on marketplace operators, and the conditions under which the deemed supplier mechanism is triggered. The ruling has significant implications for both marketplace platforms and third-party sellers operating in the UK e-commerce space.
France: VAT guidance issued for successive supplies following export sales
France has issued VAT guidance addressing the treatment of successive supplies in the context of export sales. The guidance clarifies how VAT applies across supply chains where goods are exported, particularly in scenarios involving multiple transactions before or during exportation. This is significant for businesses engaged in cross-border trade through France, as it determines which party in the chain can claim the VAT exemption applicable to exports and how intermediate supplies are treated. Companies involved in export chains will need to review their VAT compliance processes in light of this new French tax authority guidance.
Zampa Partners Online Session: VAT Q&A session (July 14)
Zampa Partners is hosting an online VAT Q&A session on July 14, offering participants an opportunity to raise VAT-related questions and receive expert guidance. The session appears designed for businesses and tax professionals seeking clarity on VAT compliance, interpretation, or planning issues. While specific topics are not detailed in the title, the format suggests an interactive advisory format covering practical VAT concerns. Such events are common in the tax advisory space to help clients navigate evolving VAT rules across jurisdictions.
Romania Tightens E-Invoicing Enforcement as Grace Period Ends and B2C Rules Are Clarified
Romania has tightened enforcement of its e-Factura e-invoicing system following the end of a grace period, with Law 88/2026 also clarifying the scope of B2C rules and obligations for individuals and special entities. The update narrows applicability for certain categories while reinforcing mandatory compliance for B2B transactions. Businesses operating in Romania must now ensure full technical and procedural alignment with the RO e-Factura platform. The clarification of B2C rules signals Romania's broader push toward comprehensive digital invoicing coverage, reducing ambiguity for taxpayers and tax authorities alike.
Minutes – Group on the Future of VAT & VAT Expert Group Joint Meeting (25 June 2026)
The European Commission's Group on the Future of VAT and the VAT Expert Group held a joint meeting on June 25, 2026, with published minutes providing insight into EU-level VAT policy deliberations. These groups advise the Commission on VAT reform, simplification, and harmonisation across member states. Topics likely covered evolving challenges such as the digital economy, cross-border transactions, and VAT gap reduction. The meeting reflects ongoing EU efforts to modernise the VAT framework and align member state practices with broader economic and compliance objectives.
Mandatory B2G e-invoicing in New Zealand is coming
New Zealand is moving toward mandatory business-to-government (B2G) e-invoicing, signalling a significant step in the country's digital tax administration agenda. The mandate will require suppliers transacting with government entities to submit invoices electronically through a standardised framework, likely based on the Peppol network already adopted in the region. This initiative aims to improve payment efficiency, reduce fraud, and enhance data accuracy for public sector procurement. New Zealand joins a growing list of Asia-Pacific nations implementing structured e-invoicing mandates.
Comments on T-356/25 (Rapera) – Tax Representatives’ Direct VAT Liability Confirmed; Joint Liability Requires Proportionality
A commentary on case T-356/25 (Rapera) confirms that tax representatives can bear direct VAT liability under certain conditions, while establishing that any joint liability imposed must satisfy proportionality principles. The ruling clarifies the legal exposure of fiscal representatives acting on behalf of foreign businesses in VAT compliance matters. Courts appear to have drawn a distinction between direct liability arising from representative roles and broader joint liability, the latter requiring a balanced assessment of fault and risk. The decision has significant implications for tax representatives and the businesses they serve across EU jurisdictions.
Virgin Atlantic VAT Loyalty Points Appeal Stayed Pending Avios Case
Virgin Atlantic's VAT appeal concerning loyalty points has been stayed pending the outcome of the Avios case, which addresses similar VAT treatment of airline loyalty schemes. The stay reflects the importance of the Avios decision in establishing the correct VAT framework for loyalty point transactions in the UK aviation sector. The outcome will likely determine how VAT is applied to the issuance and redemption of loyalty points, with significant financial implications for airlines operating comparable reward programmes.
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