Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Belgium – VAT reform to merge 6% and 12% reduced rates into a single 9% rate
Belgium is undertaking a significant VAT reform that will consolidate its existing 6% and 12% reduced VAT rates into a single unified 9% reduced rate. The article examines the scope of goods and services currently subject to the two separate reduced rates, how the merger will affect pricing and compliance, and the timeline for implementation. Businesses operating in Belgium will need to update their VAT accounting and billing systems to reflect the new single reduced rate structure, while also assessing any pricing strategy implications arising from rate increases or decreases on specific product categories.
Denmark – VAT on books
Denmark has introduced or amended VAT rules relating to the taxation of books, potentially aligning physical and digital book VAT treatment or adjusting the applicable reduced rate. The article examines the Danish VAT framework for books, the policy rationale behind any rate changes, and the implications for publishers, retailers, and consumers. It also considers how Denmark's approach fits within EU VAT Directive rules permitting reduced rates on publications. Businesses in the Danish publishing and bookselling sectors will need to review their VAT compliance obligations in light of the updated treatment.
June 2026 GST Collection Rises 13.9% Year-on-Year to ₹1.94 Lakh Crore
India's GST collections for June 2026 reached ₹1.94 lakh crore, marking a 13.9% year-on-year increase. This strong performance reflects continued economic activity and improved tax compliance across the country. The figures highlight the sustained buoyancy in indirect tax revenues under the GST framework, which consolidates multiple taxes into a unified system. Consistent double-digit growth signals robust domestic consumption and strengthened enforcement mechanisms by tax authorities. The data is significant for fiscal planning, as GST revenues are a key component of both central and state government finances in India.
Introducing the 2026 Italy VAT Guide
A 2026 Italy VAT Guide has been introduced by Global VAT Compliance, providing comprehensive coverage of Italy's VAT framework. The guide covers key aspects of Italy's VAT system including registration requirements, rates, compliance obligations, and reporting procedures relevant for businesses operating in or trading with Italy. Italy has one of the more complex VAT environments in the EU, featuring mandatory B2B and B2G e-invoicing via the SdI platform, split payment mechanisms, and specific rules for foreign businesses. The guide serves as a practical reference for tax professionals navigating Italian VAT compliance in 2026.
Guidance: List of Individual Savings Account (ISA) managers approved by HMRC
HMRC publishes and maintains an official list of Individual Savings Account (ISA) managers approved to offer ISAs to UK savers. ISAs are tax-advantaged savings vehicles where returns are exempt from UK income tax and capital gains tax. The list helps individuals and financial institutions verify whether a provider is HMRC-approved to manage these tax-exempt accounts, ensuring compliance with ISA regulations. Approved managers must meet specific HMRC criteria to offer Cash ISAs, Stocks and Shares ISAs, Innovative Finance ISAs, and Lifetime ISAs, all of which carry significant personal tax relief implications for UK residents.
Gujarat AAR: No GST on Compensation for Loss or Damage to Goods Recovered from Transporters
The Gujarat Authority for Advance Rulings (AAR) has ruled that GST does not apply to compensation received for loss or damage to goods recovered from transporters. The ruling clarifies that such compensation payments are not consideration for a supply of goods or services, meaning they fall outside the GST levy. This is significant for businesses that recover amounts from logistics providers when goods are damaged or lost in transit, providing clarity that these receipts will not attract GST liability and do not require the recipient to raise a tax invoice or reverse any input tax credit.
Assessment in the Name of a Deceased Person Is a Nullity: ITAT Allows Legal Ground Even If Not Raised Before CIT(A)
India's Income Tax Appellate Tribunal (ITAT) ruled that a tax assessment issued in the name of a deceased person is legally void and constitutes a nullity. Notably, the tribunal permitted this jurisdictional legal ground to be raised for the first time at the appellate stage, even though it had not been argued before the Commissioner of Income Tax (Appeals). The ruling reinforces the principle that procedural defects of a fundamental nature — such as assessing a person who is legally dead — can be challenged at any stage of proceedings, providing important protections for legal heirs and estates.
AI in corporate tax: Key trends, use cases, and what’s next
This article explores how artificial intelligence is transforming corporate tax functions, highlighting key trends, practical use cases, and future developments. It examines AI applications across tax compliance, data management, research, and reporting workflows. Topics likely include automation of routine tax tasks, AI-assisted analysis of complex regulations, integration with ERP systems, and how tax teams can leverage machine learning to improve accuracy and efficiency. The piece positions AI as a strategic tool for corporate tax departments looking to modernize operations, reduce manual workload, and better manage risk in an increasingly complex global tax environment.
Financial costs
This UK HMRC toolkit guidance covers the tax treatment of financial costs, focusing on the distinction between capital and revenue expenditure for corporation tax and income tax purposes. It addresses costs such as loan arrangement fees, interest, and other financing charges, clarifying when these are immediately deductible or must be capitalised. Correct classification is critical for computing taxable profits accurately. The guidance helps practitioners and HMRC compliance officers identify and rectify common errors in tax returns relating to the treatment of financial and borrowing costs.
Corporate intangible assets
This UK HMRC guidance covers the tax treatment of corporate intangible assets, distinguishing between capital and revenue expenditure. It addresses how costs related to intangible assets such as intellectual property, goodwill, and software are classified for UK corporation tax purposes under the Corporate Intangible Assets regime. Proper classification determines whether expenditure is immediately deductible as revenue or must be capitalised, affecting the timing and nature of tax relief available to companies. This toolkit helps tax practitioners and HMRC compliance officers identify and correct common errors in returns.
Legal and professional fees
This UK HMRC toolkit guidance addresses the tax treatment of legal and professional fees, helping determine whether such costs constitute capital or revenue expenditure for corporation tax and income tax purposes. Legal fees related to acquiring capital assets must generally be capitalised, while those relating to ongoing business operations may be deducted as revenue expenses. The guidance assists practitioners in correctly classifying costs such as conveyancing, litigation, and advisory fees, reducing errors in tax returns and ensuring compliance with UK tax rules on deductibility.
Capital versus Revenue expenditure toolkit
HMRC's Capital versus Revenue Expenditure Toolkit assists tax agents and businesses in correctly distinguishing between capital and revenue expenditure for UK tax purposes. Revenue expenditure is generally deductible from taxable profits in the period incurred, while capital expenditure is not immediately deductible but may qualify for capital allowances. Misclassification is a common area of tax error and HMRC enquiry. The toolkit provides structured guidance to reduce errors in tax returns for both corporate and unincorporated businesses, supporting compliance with corporation tax and income tax rules on expenditure categorisation.
Acquisition, improvement and alteration of assets
This HMRC guidance covers the tax treatment of expenditure on acquisition, improvement, and alteration of assets, distinguishing between capital and revenue expenditure for UK tax purposes. Capital expenditure on acquiring or improving assets is generally not immediately deductible against profits, whereas revenue expenditure may be. The distinction is critical for businesses calculating taxable profits, as misclassification can lead to incorrect tax filings. The guidance helps taxpayers and agents correctly categorise costs related to asset modifications, with implications for corporation tax and income tax computations across affected businesses.
General
This UK HMRC capital versus revenue expenditure toolkit provides general guidance on distinguishing capital from revenue costs for tax purposes. The classification is fundamental to UK tax compliance, as revenue expenditure is typically deductible in the period incurred while capital expenditure must be capitalised and may qualify for capital allowances instead. The general section sets out the overarching principles and legal tests used to make this determination, supporting both HMRC compliance officers and tax practitioners in identifying common errors across corporation tax and income tax returns.
IT costs
This HMRC guidance specifically addresses the tax treatment of IT costs under the capital versus revenue expenditure framework in the UK. It helps businesses and agents determine whether IT spending — such as software licences, hardware purchases, cloud subscriptions, or system development costs — should be treated as capital or revenue expenditure for tax purposes. Revenue IT costs are typically deductible immediately, while capital IT costs may qualify for capital allowances. Correct classification is important for accurate corporation tax and income tax returns, and this section of the toolkit targets a frequently misclassified expenditure category.
Govt Extends GSTAT Appeal Filing Deadline to July 31 Amid Surge in Portal Filings
The Indian government has extended the deadline for filing appeals before the GST Appellate Tribunal (GSTAT) to July 31, citing a significant surge in filings on the official portal. The extension provides taxpayers and businesses additional time to prepare and submit their appeals without facing procedural lapses. GSTAT, the dedicated appellate body for GST disputes, has seen high demand since becoming operational, reflecting the volume of unresolved GST controversies across India. The deadline relief is intended to ease portal congestion and ensure taxpayers are not prejudiced by technical or administrative bottlenecks during the filing process.
Slovakia: Draft VAT reform introduces ViDA measures and OSS expansion
Slovakia has published a draft VAT reform proposal incorporating measures from the EU's VAT in the Digital Age (ViDA) initiative along with expansions to the One Stop Shop (OSS) scheme. The draft introduces digital reporting requirements and e-invoicing mandates aligned with ViDA's platform economy and single VAT registration pillars. OSS expansion aims to simplify VAT compliance for cross-border suppliers of goods and services. The reform reflects Slovakia's effort to modernize its VAT system in line with EU directives, reducing administrative burdens while improving tax collection efficiency and combating VAT fraud through enhanced transaction reporting.
EU Framework for Taxation of the Financial Sector
The EU is developing a framework for taxation of the financial sector, addressing how financial services should be treated under European tax rules. This is significant given that financial services are largely exempt from VAT under current EU law, and ongoing discussions explore whether reforms such as a financial transactions tax or revised VAT treatment could modernize the sector's tax obligations. The framework aims to ensure fair taxation across EU member states while maintaining competitiveness of European financial markets.
EU – EU Budget: European Digital Service Tax in Scope
The EU is considering a European-level Digital Services Tax (DST) as part of its budget framework for the 2028–2034 multiannual financial period. This proposal would introduce a bloc-wide levy on digital services revenues, potentially replacing or complementing existing national DSTs across member states. The initiative reflects ongoing efforts to establish a harmonized EU own-resource revenue stream targeting large digital economy players. The move aligns with broader international discussions on taxing the digital economy and could have significant implications for multinational tech companies operating across EU member states.
Kazakhstan Expands VAT Exemptions and Adjusts Reduced Rates in Healthcare
Kazakhstan has expanded VAT exemptions and adjusted reduced VAT rates specifically within the healthcare sector. The changes broaden the scope of goods and services that qualify for preferential VAT treatment, aiming to reduce the tax burden on healthcare providers and patients. The adjustments reflect Kazakhstan's ongoing efforts to align its VAT framework with social policy goals, ensuring essential medical goods and services remain accessible. Businesses operating in Kazakhstan's healthcare sector should review the updated exemptions and rate structures to ensure compliance.
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