Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Finance Act 2026 Reshapes VAT — Including Removing Imported Fishing Nets from the Exempt List
An unnamed country's Finance Act 2026 introduces several VAT changes, including the removal of imported fishing nets from the VAT exemption list, signalling a tightening of exemptions on goods imports. The act reshapes the broader VAT framework with multiple amendments affecting rates, exemptions, and the scope of taxable supplies. The fishing nets change illustrates how targeted sectoral adjustments are being made alongside broader structural reforms. Businesses engaged in importation and sectors previously benefiting from exemptions will need to reassess their VAT positions under the updated legislation.
Recodification of VAT into the CIBS Likely Postponed to 1 January 2027
The planned recodification of VAT rules into France's new Code des Impositions sur les Biens et Services (CIBS) is likely to be delayed from its originally anticipated timeline to 1 January 2027. The CIBS is a major legislative project to consolidate and modernise indirect tax law in France. The postponement gives businesses and practitioners additional time to prepare for the structural changes the recodification will bring, though the substantive law is not expected to change significantly. The delay reflects the complexity of integrating existing VAT provisions into the new code.
Tax Court Says CRA Must Honour Stale-Dated Input Tax Credits — The Ontario Tire Stewardship Win
Canada's Tax Court ruled in favour of Ontario Tire Stewardship, holding that the Canada Revenue Agency must honour input tax credits (ITCs) even where the claims were considered stale-dated. The CRA had sought to deny the ITCs on timing grounds, but the court found the credits were validly claimed within the applicable rules. The decision is significant for GST/HST registrants managing retroactive or delayed ITC claims, clarifying that procedural limitations cannot override substantive entitlements where the statutory conditions are met. The ruling reinforces taxpayer rights in ITC disputes with the CRA.
France VAT Exemption Threshold 2026
France is updating its VAT exemption thresholds for 2026, affecting small businesses operating below certain turnover limits. The exemption scheme allows qualifying businesses to avoid charging VAT on their sales, simplifying compliance obligations. The 2026 thresholds reflect adjustments relevant to both domestic French businesses and foreign companies supplying goods or services in France. Businesses must monitor their turnover carefully against these limits to determine registration obligations. Exceeding the threshold triggers standard VAT compliance requirements. This update is particularly significant for small enterprises and cross-border digital service providers assessing their French VAT exposure.
Luxembourg moves towards mandatory B2B e-invoicing
Luxembourg has announced plans to introduce mandatory B2B e-invoicing, with implementation targeted for 2028. The move aligns Luxembourg with the broader EU trend of adopting structured digital invoicing to combat VAT fraud and improve tax compliance. Businesses operating in Luxembourg will need to adapt their invoicing systems to meet the new requirements ahead of the deadline. The initiative follows similar mandates already enacted or planned in France, Germany, Belgium, and other EU member states, and is expected to drive significant investment in e-invoicing infrastructure and ERP system updates for companies active in Luxembourg.
Rajasthan Government Issues New Guidelines for GST Return Scrutiny
The Rajasthan state government has issued new guidelines governing the scrutiny of GST returns filed by taxpayers within the state. The guidelines establish structured procedures for tax officers to examine return discrepancies, mismatches between GSTR-1 and GSTR-3B filings, and input tax credit anomalies. The update aims to standardize enforcement and improve compliance monitoring across Rajasthan's GST administration. Practitioners and businesses operating in Rajasthan should review their return filing practices to ensure alignment with the enhanced scrutiny framework, as the guidelines signal increased administrative focus on identifying underreported liabilities and incorrect credit claims.
Suspicion Alone Cannot Justify Income Tax Additions: Supreme Court Upholds Deletion of ₹16.61 Crore Alleged Unaccounted Sales
India's Supreme Court upheld the deletion of a ₹16.61 crore income tax addition related to alleged unaccounted sales, ruling that mere suspicion without corroborating evidence cannot justify tax additions. The court reaffirmed that tax authorities must base assessments on concrete material rather than conjecture. This ruling reinforces evidentiary standards in income tax proceedings and limits the ability of assessing officers to make additions solely on the basis of suspicion, providing significant protection to taxpayers facing unsubstantiated assessments of undisclosed income.
Refund Cannot Be Denied for Mere Technical Lapse: ITAT Invokes Article 265 to Protect Taxpayer’s Rights
India's Income Tax Appellate Tribunal ruled that tax refunds cannot be denied solely due to technical lapses by the taxpayer, invoking Article 265 of the Indian Constitution, which prohibits collection of taxes without authority of law. The ITAT held that procedural non-compliance should not override substantive rights to refund where tax has been validly paid and the refund claim is legitimate. This decision strengthens taxpayer protections against arbitrary denial of refunds on technical grounds and has broad implications for refund proceedings across Indian income tax administration.
Breaking News: Supreme Court Upholds Gujarat High Court Verdict – No GST on Transfer of Long-Term Leasehold Rights of Industrial Plots
India's Supreme Court upheld a Gujarat High Court verdict ruling that the transfer of long-term leasehold rights over industrial plots is not subject to GST. The court determined that such transfers do not constitute a supply of goods or services under the GST framework, providing significant relief to businesses involved in industrial land transactions. The ruling clarifies the GST treatment of leasehold rights, which has been a contentious area, and sets a binding precedent affecting industrial plot transactions and similar long-term lease arrangements across India.
Malaysia Introduces e-Invoice Voluntary Disclosure Programme
Malaysia has introduced an e-Invoice Voluntary Disclosure Programme, offering taxpayers an opportunity to come forward and rectify non-compliance with the country's e-invoicing requirements. The programme reflects Malaysia's ongoing effort to enforce its mandatory e-invoicing rollout, which has been phased in since August 2024. By allowing voluntary disclosure, the Inland Revenue Board of Malaysia (LHDN) aims to encourage adoption and correct implementation of the e-invoice system while reducing penalties for those who proactively address gaps in compliance. This development is significant for businesses operating in Malaysia that are navigating the transition to mandatory e-invoicing.
Illinois Use Tax Versus Chicago Municipal Taxes: Digital Products and Services
Illinois use tax and Chicago municipal taxes create a complex dual-layer compliance environment for digital products and SaaS providers. Illinois imposes use tax on digital goods and services at the state level, while Chicago levies its own municipal taxes, including the Personal Property Lease Transaction Tax and Amusement Tax, on similar transactions. Businesses selling SaaS, streaming, or other digital services must navigate both regimes, which differ in scope, rates, and applicable exemptions. The overlap creates significant compliance challenges, particularly for out-of-state vendors determining nexus and taxability across these overlapping jurisdictions.
Madras HC: Govt. Contractors Eligible for Additional GST Reimbursement Following VAT-to-GST Transition
The Madras High Court has ruled that government contractors are entitled to additional GST reimbursement to compensate for the increased tax burden arising from the transition from VAT to GST. The court found that contractors who entered into agreements under the VAT regime and faced higher effective tax rates under GST are eligible for reimbursement of the differential cost from the government. This ruling has significant implications for public sector contracts and infrastructure projects entered into before GST implementation in 2017, clarifying the state's obligation to indemnify contractors against transition-related tax cost increases.
ECJ Case: Company director’s right to challenge VAT liability
A European Court of Justice case addresses whether a company director has the right to challenge a VAT liability assessment. The ruling has significant implications for how VAT debts can be pursued against individuals in their capacity as directors, particularly regarding procedural rights and the ability to contest underlying tax assessments. This case is relevant for directors of companies facing VAT enforcement actions across EU member states, as it clarifies the extent of personal liability exposure and the legal remedies available to individuals when tax authorities seek to recover VAT debts through director liability provisions.
Delhi HC Restores GST Registration of Tempo Owner, Citing Impact of Cancellation on Livelihood
The Delhi High Court has ordered the restoration of GST registration for a tempo (commercial vehicle) owner whose registration had been cancelled by authorities. The court emphasized that cancellation of GST registration directly impacts the individual's livelihood and ability to conduct business, warranting judicial intervention. The ruling highlights the courts' consistent approach of weighing the disproportionate hardship caused by GST registration cancellations on small business operators and self-employed individuals. The decision reinforces that tax authorities must consider humanitarian and livelihood factors before cancelling registrations, particularly for sole proprietors and small traders dependent on their registration for income.
Belgium’s E-Reporting pre-draft law approved
Belgium has approved a pre-draft law introducing e-reporting obligations, marking a significant step toward mandatory electronic invoicing and transaction reporting for businesses operating in the country. The legislation sets the groundwork for a structured digital reporting framework, aligning Belgium with broader European efforts to modernize VAT compliance and reduce the tax gap. Practitioners and businesses will need to prepare for upcoming technical and procedural requirements as the law progresses through the legislative process. The development is particularly relevant for companies with Belgian operations that must plan system updates and compliance workflows ahead of implementation deadlines.
A Matter of Balance: IRS Appeals Processes, Staffing Create Growing Concerns for Practitioners, Taxpayers
Practitioners and taxpayers are raising growing concerns about IRS Appeals processes and staffing shortfalls that are creating significant delays and imbalances in dispute resolution. The article examines how reduced staffing within IRS Appeals is affecting case timelines, access to hearings, and overall fairness in the tax controversy process. Tax professionals report difficulties securing timely appeals conferences and adequate engagement from Appeals officers. The situation points to systemic challenges within IRS administration that may undermine taxpayer rights and due process protections, prompting calls for resource investment and structural reform within the Appeals division.
Americans Don’t Know Their Taxes: A Third Fear They’ve Missed Deductions or Credits
A survey reveals significant gaps in Americans' tax literacy, with approximately one-third of respondents fearing they have missed eligible deductions or credits on their tax returns. The findings highlight widespread uncertainty around personal income tax filing, including confusion about qualifying expenses, available credits, and proper documentation. The data suggests many taxpayers may be over-paying due to lack of awareness rather than intentional non-compliance. The article points to an ongoing need for better taxpayer education and accessible guidance, with implications for tax preparers and advisors who serve clients with limited tax knowledge.
Arbitration Valid In Tax Privacy Suit, H&R Block Tells 9th Circ.
H&R Block is arguing before the Ninth Circuit that an arbitration clause is valid in a tax privacy lawsuit. The case centers on whether customers who allege H&R Block improperly shared their tax data with third parties must resolve their claims through arbitration rather than litigation. The outcome could have significant implications for how tax preparation firms handle data privacy disputes and whether class action litigation in tax-related privacy cases can be compelled to arbitration, affecting millions of taxpayers who use commercial tax preparation services.
IRS Lacks Expert Testimony In Easement Fight, Donor Says
A taxpayer involved in a conservation easement dispute is challenging the IRS in Tax Court, arguing that the government lacks qualified expert testimony to support its position. Conservation easement cases have been a major IRS enforcement priority, with the agency frequently contesting inflated deduction valuations. The absence of expert testimony could weaken the IRS's case significantly, potentially setting a precedent for how the agency must substantiate its valuation challenges in easement disputes and impacting a broader IRS campaign against syndicated conservation easement tax shelters.
Amgen To Pay $74M To End Investor Suit Over $10.7B Tax Bill
Amgen has agreed to pay $74 million to settle an investor lawsuit stemming from a $10.7 billion IRS tax bill dispute. The investor suit alleged that Amgen misled shareholders about its transfer pricing arrangements and the associated tax liabilities. The settlement resolves securities claims but does not address the underlying IRS transfer pricing dispute, which involves how Amgen allocated profits between its US operations and Puerto Rico subsidiary. The case highlights the compounding legal and financial risks pharmaceutical companies face when aggressive transfer pricing strategies attract major IRS scrutiny.
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