Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Petrol, diesel prices still carry 29pc tax despite cut: sources
Despite a recent reduction in petrol and diesel prices in Pakistan, sources reveal that fuel prices still carry a 29 percent tax component, including petroleum levy and sales tax. This means consumers are not experiencing the full benefit of the price cut, as the substantial tax burden embedded in fuel pricing remains unchanged. The disclosure highlights ongoing tensions between government revenue requirements from petroleum taxation and consumer relief expectations, with the levy forming a critical part of Pakistan's fiscal revenue strategy.
FBR notifies updated customs duty on import of hybrid vehicles
Pakistan's Federal Board of Revenue (FBR) has issued an updated notification revising customs duty rates applicable to the import of hybrid vehicles. The updated duty structure reflects the government's efforts to balance revenue collection with incentivizing environmentally friendly vehicle adoption. Hybrid vehicles have been subject to concessionary duty treatment compared to conventional combustion engine cars, and the revised rates will directly impact import costs, pricing in the local auto market, and consumer demand for hybrid models in Pakistan.
Briefing Document & Podcast: E-Invoicing & E-Reporting in Croatia
This briefing document and accompanying podcast covers Croatia's e-invoicing and e-reporting framework, providing guidance on the country's specific mandates and regulatory requirements. The resource examines the implementation details, timelines, and compliance obligations for businesses operating in Croatia. It serves as a practical reference for taxpayers and advisors navigating Croatia's digital invoicing landscape, outlining what is required under Croatian law and how businesses should prepare for and meet their e-invoicing obligations.
ECJ/General Court VAT Cases – Pending cases
This resource compiles and tracks pending VAT cases before the European Court of Justice (ECJ) and the General Court, providing an overview of ongoing litigation that could shape EU VAT law. The list serves as a reference tool for tax practitioners monitoring developments in EU VAT jurisprudence. These pending cases span various VAT issues across multiple member states and represent potential landmark rulings that could affect how VAT Directive provisions are interpreted and applied across the European Union.
Roadtrip through ECJ Cases – Focus on ”Exemption – Financial transactions – Credits and transfer of Credits” (Art. 135(1)(b))
This article explores ECJ case law focusing on VAT exemptions for financial transactions related to credits and the transfer of credits under Article 135(1)(b) of the EU VAT Directive. It reviews how the ECJ has interpreted and applied this exemption across multiple decisions, mapping the evolution of the legal principles involved. The analysis is valuable for financial institutions and tax practitioners seeking to understand the boundaries of VAT-exempt lending and credit-related services under EU law.
Roadtrip through ECJ Cases – Focus on ”Exemption – Financial transactions – deposit and current accounts, payments, transfers, debts, cheques and other negotiable instruments” (Art. 135(1)(d))
This article examines ECJ case law on the VAT exemption for financial transactions under Article 135(1)(d) of the EU VAT Directive, covering deposit and current accounts, payments, transfers, debts, cheques, and other negotiable instruments. It surveys how the ECJ has interpreted this exemption across various rulings, clarifying the scope of exempt payment and transfer services. The analysis helps financial services firms and tax advisors determine which transaction types qualify for VAT exemption under EU jurisprudence.
ECJ & General Court VAT Cases decided in 2026
This resource compiles all ECJ and General Court VAT decisions issued during 2026, serving as a comprehensive reference guide for EU VAT case law in the current year. It tracks rulings across a range of VAT issues and member states, reflecting the ongoing development of EU VAT jurisprudence. Tax practitioners and advisors can use this compilation to monitor significant judicial interpretations of the EU VAT Directive and understand how courts are resolving disputes brought by businesses and tax authorities.
No Interest Accrues When VAT Refunds Are Suspended Pending Guarantee Documents
A ruling clarifies that no interest accrues on VAT refunds that are suspended while taxpayers are required to provide guarantee documents. The decision addresses the timeline for interest entitlement, finding that the suspension period pending submission of guarantees does not trigger interest obligations on the tax authority. This has practical implications for businesses awaiting VAT refunds who must first satisfy documentary or security requirements before refunds are released, effectively meaning the clock for interest does not run during that administrative holding period.
Court of Appeal Rules Bolt Ride-Hailing Services Outside TOMS
The Court of Appeal has ruled that Bolt's ride-hailing services fall outside the Tour Operators' Margin Scheme (TOMS), a VAT margin scheme originally designed for travel businesses. The judgment determines that Bolt does not meet the criteria for TOMS application, meaning the platform cannot calculate VAT solely on its margin. The ruling has significant implications for gig-economy ride-hailing platforms regarding their VAT accounting obligations and potentially increases their VAT liability. It also contributes to ongoing debate about how VAT rules apply to digital platform-based transportation services.
No VAT Deduction on Car Purchase: Entrepreneurship Not Proven
A court denied a VAT deduction claimed on a car purchase because the taxpayer failed to sufficiently demonstrate entrepreneurship status. The ruling underscores that VAT input tax deductions are only available to those acting in the capacity of a taxable person engaged in economic activity. Where a claimant cannot prove they were conducting a genuine business enterprise at the time of the purchase, the right to deduct input VAT is disallowed. This case highlights the evidentiary burden taxpayers must meet to establish business use and entrepreneurial standing for VAT recovery purposes.
Chile SII Clarifies VAT and Income Tax Treatment of Fraudulent Invoices
Chile's tax authority, the SII, has issued guidance clarifying the VAT and income tax treatment of fraudulent invoices. The clarification addresses how businesses should handle input tax credits and deductions linked to invoices later found to be false or irregular. Under the guidance, taxpayers using fraudulent invoices may be denied VAT deductions and income tax expense claims, with potential penalties. The ruling provides practical direction for taxpayers and advisers on compliance obligations and corrective actions when fraudulent documentation is identified within the supply chain.
VAT IT Webinar: Mastering e-Invoicing in France: Stay Ahead, Stay Compliant (June 25)
A VAT IT webinar scheduled for June 25 focuses on France's e-invoicing mandate, helping businesses stay compliant with the upcoming regulatory requirements. The session covers practical guidance on navigating France's phased e-invoicing rollout, which requires businesses to adopt structured electronic invoicing through approved platforms (PDPs) and the state-operated portal (PPF). Attendees will learn how to implement compliant systems, avoid common pitfalls, and prepare for the mandate's requirements. The webinar targets finance and tax professionals needing to understand France's specific technical and legal obligations under its e-invoicing framework.
GCC Approves VAT Agreement Amendments for Cross-Border Trade
The Gulf Cooperation Council (GCC) has approved amendments to its unified VAT agreement governing cross-border trade among member states, including Saudi Arabia, UAE, Bahrain, Kuwait, Oman, and Qatar. The amendments aim to harmonise VAT rules for intra-GCC transactions, addressing inconsistencies in how cross-border supplies of goods and services are treated across member states. The changes are expected to streamline compliance for businesses operating across the GCC, reduce double taxation risks, and align the framework more closely with international VAT standards. Specific provisions target the place-of-supply rules and VAT obligations for cross-border trade.
Court of Appeal Rules Bolt PHV Services Not Eligible for TOMS
The UK Court of Appeal has ruled that Bolt's private hire vehicle (PHV) services do not qualify for the Tour Operators' Margin Scheme (TOMS). TOMS is a special VAT accounting scheme designed for businesses buying and reselling travel services. The ruling clarifies the boundaries of TOMS eligibility for ride-hailing and PHV operators, with significant implications for how platforms like Bolt account for VAT on their transportation services in the UK. The decision adds to ongoing legal scrutiny of gig economy platforms and their VAT treatment.
HMRC Confirms VAT Treatment of Public Funding for Further Education Institutions
HMRC has issued clarification on the VAT treatment of public funding received by further education institutions in the UK. The guidance addresses whether such funding constitutes consideration for a taxable supply or falls outside the scope of VAT. HMRC's position affects how colleges and further education bodies account for VAT on government grants and public subsidies, with implications for input tax recovery. The clarification helps institutions determine their VAT obligations and whether funding streams trigger output tax liabilities or remain non-business income, impacting financial planning and compliance across the further education sector.
Georgia Updates Sales Tax Rates for Manufacturer Energy
Georgia has updated its sales tax rates applicable to energy used in manufacturing. The revision targets the taxation of energy consumption within production processes, a common area of sales tax exemption or reduced-rate treatment in US states seeking to support manufacturing industries. The updated rates reflect the state's approach to balancing tax revenue with incentives for industrial activity. Manufacturers operating in Georgia should review their energy purchasing and tax compliance processes to ensure alignment with the newly effective rates.
VAT Establishment Pitfalls: Lessons from HMRC Practice and Case Law
This analysis examines common pitfalls surrounding VAT establishment rules in the UK, drawing on HMRC practice and relevant case law. The piece explores how the concepts of 'place of establishment' and 'fixed establishment' are interpreted for VAT purposes, with particular focus on scenarios where businesses inadvertently create taxable presences or mischaracterise their VAT position. Key lessons from tribunal and court decisions highlight risks for international businesses operating in the UK, including VAT grouping complications and recovery issues. The article provides practical guidance for businesses to audit their establishment positions and avoid costly compliance errors.
VAT Risks in UK Recruitment Under Joint and Several Liability Rules
UK businesses in the recruitment sector face significant VAT risks under joint and several liability rules, which can make agencies or hirers liable for unpaid VAT obligations of other parties in the supply chain. The rules are particularly relevant in labour supply chains where multiple intermediaries are involved. Compliance failures by one party can expose others to VAT debts they did not directly incur. The article highlights the importance of due diligence, contractual protections, and awareness of HMRC's enforcement approach in recruitment and staffing arrangements.
Cuban Regime to Apply VAT to Production and Consumption Chains
Cuba's government is moving to introduce a value-added tax (VAT) across its production and consumption supply chains, representing a significant shift in the country's indirect tax framework. The reform aims to modernise tax collection and broaden the fiscal base as Cuba faces severe economic pressures. Applying VAT throughout the supply chain mirrors international standard VAT structures and marks a departure from Cuba's historically centralised, non-market tax system. Implementation challenges are expected given the country's mixed state-private economy and limited administrative infrastructure.
Barclays Fails Appeal on UK VAT Grouping and Fixed Establishment
Barclays has lost its appeal concerning UK VAT grouping rules and the concept of fixed establishment. The case examined whether certain overseas entities or branches could be included in Barclays' UK VAT group and whether the relevant establishments met the legal threshold of 'fixed establishment' for VAT purposes. HMRC's position was upheld, with the tribunal or court finding that the contested entities did not satisfy the necessary criteria. The ruling has broader implications for financial services groups structuring their UK VAT groups and claiming input tax recovery through group membership, reinforcing HMRC's strict approach to fixed establishment determinations.
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