Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Denim Co. Unlawfully Passed On Tariff Costs, Customer Says
A customer has filed a lawsuit against a denim company alleging it unlawfully passed on tariff costs to consumers in violation of contractual or statutory obligations. The case centers on whether the retailer was legally permitted to transfer import tariff burdens directly to buyers, raising questions about pricing practices and tariff cost allocation under trade and consumer protection law. The dispute reflects broader litigation trends as companies have sought to recoup increased costs from US tariffs imposed on imported goods.
IRS Failed to Meet Veteran Hiring Goal
The IRS failed to meet its veteran hiring goals, according to a report highlighting the agency's workforce management shortcomings. The IRS is required under federal law to prioritize hiring veterans, but fell short of mandated targets. This has implications for the agency's overall staffing capacity, which affects its ability to process tax returns, conduct audits, and enforce tax compliance. Chronic understaffing at the IRS has long been linked to reduced tax enforcement effectiveness and a widening tax gap, making workforce issues a significant concern for tax administration in the United States.
Kalshi Sues Illinois to Nullify New Prediction Market Tax Law
Prediction market platform Kalshi has filed a lawsuit against Illinois seeking to nullify a newly enacted state tax law targeting prediction markets. The legal challenge contests the validity of Illinois's tax on prediction market transactions, raising constitutional and regulatory arguments. The case highlights growing legislative scrutiny of prediction markets as they expand into regulated financial products. The outcome could have significant implications for how states tax emerging financial instruments and whether such targeted tax laws can withstand legal challenges.
Chain Transactions – The Most Common Mistakes
An analysis of the most common VAT mistakes made in chain transactions, where goods are sold through multiple parties before reaching the final customer. Key errors include incorrectly identifying which supply is the 'moved' supply, misapplying zero-rating to intra-community transactions, failing to account for intermediary operator status, and incorrectly handling triangulation simplifications. The article draws on EU VAT Directive rules and case law to clarify how businesses should determine the place of supply, allocate transport, and apply exemptions correctly to avoid VAT disputes and penalties.
Resale of Electricity to the Grid Is Subject to VAT
This article addresses whether the resale of surplus electricity back to the grid by households or businesses is subject to VAT. It examines the conditions under which electricity sellers qualify as taxable persons for VAT purposes, including the regularity and economic nature of the activity. Drawing on EU VAT Directive principles and relevant case law, it concludes that grid resale generally constitutes an economic activity subject to VAT, with implications for prosumers, solar panel owners, and energy companies regarding registration obligations and input tax recovery.
Short-Term Accommodation in a Residential Unit – VAT and PIT Treatment
This article explores the tax treatment of short-term accommodation rentals within residential units, covering both VAT and personal income tax (PIT) implications. It examines when such rentals qualify as VAT-exempt residential letting versus taxable short-term accommodation services, the role of ancillary services in determining VAT status, and applicable thresholds. On the PIT side, it addresses how rental income is classified, what deductions are available, and how platforms such as Airbnb affect reporting obligations. The analysis provides guidance for individual landlords navigating dual tax obligations across these rental arrangements.
TIGTA Made 91 Surprise Visits to IRS Taxpayer Assistance Centers. Here’s What Happened
The Treasury Inspector General for Tax Administration (TIGTA) conducted 91 unannounced inspections of IRS Taxpayer Assistance Centers (TACs) to evaluate service quality and compliance. The visits assessed whether centers were properly staffed, accessible to taxpayers, and meeting service standards. Findings highlighted operational issues and areas needing improvement in how the IRS delivers in-person taxpayer support. The report underscores ongoing scrutiny of IRS administrative performance and accountability, with implications for how the agency allocates resources and serves individuals seeking face-to-face assistance with tax matters.
Senate Democrat Demands Records on DOJ, IRS Settlement Planning
A Senate Democrat has formally demanded records related to settlement planning discussions between the Department of Justice and the IRS. The inquiry raises concerns about potential political interference in tax enforcement and settlement decisions, touching on the independence of tax administration. The demand for records signals congressional oversight scrutiny over how the IRS and DOJ coordinate on resolving high-profile tax disputes and settlements, with broader implications for the integrity of federal tax controversy processes and enforcement priorities.
Statutory guidance: Reference Document for The Customs (Northern Ireland) (EU Exit) Regulations 2020
This statutory guidance provides the reference document for The Customs (Northern Ireland) (EU Exit) Regulations 2020, outlining the customs framework applicable to Northern Ireland following Brexit. It covers the specific customs rules and procedures governing the movement of goods between Northern Ireland, Great Britain, and the EU, reflecting Northern Ireland's unique position under the Windsor Framework. The document serves as an authoritative guide for traders and businesses navigating the dual customs arrangements that apply in Northern Ireland, including tariff treatments and regulatory compliance requirements for cross-border trade.
VATupdate Newsletter Week 27 2026
The VATupdate Newsletter for Week 27 of 2026 compiles the latest VAT and GST developments from around the world. These weekly newsletters typically aggregate regulatory updates, court decisions, legislative changes, and administrative guidance across multiple jurisdictions, serving as a comprehensive resource for indirect tax professionals. The publication covers evolving VAT/GST rules, e-invoicing mandates, and related compliance requirements globally, making it a key reference for staying current on indirect tax changes affecting businesses operating across borders.
Surat ITAT: Delay in Filing Form 10B Not a Valid Ground to Deny Section 11/12 Exemption
The Surat Income Tax Appellate Tribunal (ITAT) ruled that a delay in filing Form 10B cannot be used as a valid ground to deny tax exemptions under Sections 11 and 12 of the Income Tax Act, which relate to exemptions for charitable and religious trusts in India. The tribunal emphasized that procedural delays in submitting audit reports should not override substantive eligibility for exemptions, providing relief to qualifying entities. This decision reinforces a taxpayer-friendly interpretation of compliance requirements, distinguishing between procedural lapses and substantive non-compliance in the context of charitable organization tax benefits.
COMARCH webinar: Decoding Slovakia’s E-Invoicing: How the 5-Corner Architecture Impacts Your Corporate Systems Before ViDA (July 20)
A Comarch-hosted webinar scheduled for July 20 focuses on Slovakia's upcoming e-invoicing mandate, specifically examining the 5-corner architecture model and its implications for corporate IT and ERP systems ahead of the EU's ViDA (VAT in the Digital Age) framework. The session is designed to help businesses understand technical integration requirements and compliance timelines. It highlights how Slovakia's e-invoicing framework aligns with broader EU digital VAT reporting initiatives, offering practical guidance for companies needing to adapt their systems before the ViDA rollout.
FTO vows to tackle tax maladministration
Pakistan's Federal Tax Ombudsman (FTO) has pledged to address tax maladministration, signaling a renewed commitment to resolving taxpayer grievances and improving the integrity of the country's tax administration. The FTO's mandate focuses on identifying systemic issues within tax authorities, ensuring fair treatment of taxpayers, and reducing instances of corruption or procedural failures. This initiative is part of broader efforts to strengthen Pakistan's tax governance framework and improve compliance by building taxpayer trust in the Federal Board of Revenue and related institutions.
The New York Pied-à-Terre Tax: What You Should Know
New York's proposed pied-à-terre tax targets non-primary residential properties owned by non-residents, particularly high-value secondary homes in New York City. The tax aims to generate revenue from wealthy out-of-state and foreign owners who maintain luxury properties in the city without contributing to local income tax bases. The article examines the structure of the proposed levy, its rate tiers based on property value, constitutional and legal considerations, and potential revenue implications. It also explores comparisons with similar taxes in other jurisdictions and the political dynamics surrounding its passage in the New York legislature.
Stamp Taxes on Shares Manual
HMRC's Stamp Taxes on Shares Manual provides official guidance on the application of UK stamp duty and stamp duty reserve tax (SDRT) on share transactions. It covers the rules governing when these taxes apply, how they are calculated, and the obligations of parties involved in share transfers and agreements to transfer shares. The manual serves as a reference for practitioners and taxpayers navigating UK stamp tax compliance on equity transactions, including exemptions, reliefs, and procedural requirements for submitting returns and paying stamp taxes on chargeable instruments.
Swedish Anti-VAT Fraud Legislation Now in Force
Sweden has enacted new anti-VAT fraud legislation that has now come into force. The legislation aims to combat VAT fraud through strengthened legal measures targeting fraudulent schemes within the Swedish VAT system. This represents a significant enforcement development for businesses operating in Sweden, tightening compliance requirements and increasing penalties or investigative powers related to VAT fraud. Companies doing business in Sweden should review their VAT compliance frameworks to ensure alignment with the updated legal framework and understand the implications for their VAT reporting and recovery processes.
Romania e-Invoicing 2026: New B2C e-Factura Reporting Rules Explained
Romania is introducing new B2C e-Invoicing reporting requirements under its e-Factura system in 2026. The update extends the existing mandatory electronic invoicing framework—previously focused on B2B transactions—to business-to-consumer sales, requiring businesses to report consumer invoices through the national RO e-Factura platform. Companies operating in Romania must adapt their invoicing systems and processes to comply with the expanded mandate. The article outlines key deadlines, scope of applicability, and technical requirements businesses need to understand to ensure compliance with Romanian tax authority regulations ahead of the 2026 implementation date.
Madras HC Grants 30 Days to Reply in GST Sec. 74 Case Over Missing Job Work Return Records
The Madras High Court has granted a 30-day period for a taxpayer to respond in a GST case under Section 74, which deals with tax not paid or short paid due to fraud or wilful misstatement. The dispute centres on missing job work return records, a common compliance requirement under India's GST framework where goods sent for job work must be tracked and returns filed. The court's intervention provides temporary relief, allowing the taxpayer time to compile documentation and present their case before tax authorities proceed further with the demand and penalty proceedings.
Case Study: VAT Backdating Czech Republic After Amazon FBA Storage in Poland and CZ
This case study examines VAT backdating obligations in the Czech Republic for sellers using Amazon FBA (Fulfilled by Amazon) with storage facilities in Poland and Czech Republic. When Amazon stores inventory in these countries, sellers trigger VAT registration requirements from the date goods first entered storage, not from when they became aware of the obligation. The article explores the retroactive VAT registration process in Czech Republic, associated penalties, and compliance steps sellers must take to rectify their position, highlighting the cross-border VAT complexity facing e-commerce merchants using Amazon's pan-European fulfillment network.
France E-Invoicing 2026 Compliance Guide — Platform Model, Scope, and Implementation Requirements
France's e-invoicing mandate for 2026 requires businesses to comply with a platform-based model for electronic invoicing. The compliance guide covers the Platform Model (Plateforme de Dématérialisation Partenaire), scope of businesses affected, and implementation requirements. France's mandate involves both e-invoicing for domestic B2B transactions and e-reporting for cross-border and B2C transactions. Businesses must register with a certified partner dematerialization platform or the public portal Chorus Pro. The guide addresses timelines, technical specifications, and compliance obligations for companies operating in France ahead of the staged rollout.
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