Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Parliament to confirm two key VAT RD’s: heat pumps reduced rate revived; pesticides and furnished accommodation rates increased
Parliament is set to confirm two significant VAT rate decisions: the reintroduction of a reduced VAT rate for heat pumps, reversing a previous change, and increases to VAT rates on pesticides and furnished accommodation. The heat pump reduced rate revival supports green energy policy objectives, while the pesticide and accommodation rate increases reflect fiscal consolidation or policy recalibration. These parliamentary confirmations highlight active VAT rate-setting activity and the ongoing balancing of environmental, agricultural, and hospitality sector tax treatment within the national VAT framework.
Belgium aligns excise rules with VAT on charitable donations of unsaleable goods
Belgium has aligned its excise duty rules with VAT regulations concerning charitable donations of unsaleable goods. The change ensures that goods deemed unfit for sale and donated to charitable organizations are treated consistently across both excise and VAT frameworks, removing potential double taxation or inconsistent treatment. This move simplifies compliance for businesses disposing of unsaleable stock through charitable channels and reflects Belgium's broader effort to harmonize indirect tax rules. The alignment is particularly relevant for sectors such as food and beverages, where excisable goods may become unsaleable and are donated rather than destroyed.
RTC Webinar: France E-Invoicing and E-Reporting 2026 | 25 June 2026, 1-2 PM (CET)
RTC is hosting a webinar on 25 June 2026 focused on France's e-invoicing and e-reporting mandate developments for 2026. The session, scheduled from 1–2 PM CET, will cover the regulatory requirements under France's phased e-invoicing reform, which mandates structured electronic invoicing between B2B operators via a Partner Dematerialization Platform (PDP) or the public invoicing portal. The webinar aims to update tax and finance professionals on compliance obligations, timelines, and technical requirements as France's mandate implementation progresses. This is a key event for businesses operating in France needing to understand their e-invoicing obligations.
Proposal: Increase of the VAT Exemption Threshold for Small Enterprises
A legislative proposal has been put forward to increase the VAT exemption threshold for small enterprises, allowing more small businesses to operate below the registration threshold and reducing their administrative compliance burden. The proposal aims to support small business growth by exempting them from VAT collection and reporting obligations up to a higher turnover level. This aligns with broader EU SME VAT relief frameworks and reflects ongoing policy discussions about reducing the regulatory load on smaller operators. The specific country or jurisdiction of the proposal and the proposed new threshold figures are key details likely covered in the full article.
Sweden: Draft bill revises input VAT allocation rules
Sweden has introduced a draft bill proposing revisions to input VAT allocation rules. The changes aim to clarify and potentially restructure how businesses apportion input VAT between taxable and exempt activities, affecting mixed-use businesses operating in Sweden. The draft bill represents a significant update to Sweden's VAT framework, with implications for companies that must calculate recoverable input VAT proportions. Businesses with both taxable and VAT-exempt supplies will need to assess the impact of the revised allocation methodology on their VAT recovery positions and compliance processes if the bill is enacted into law.
EU – Possible Postponement of the Import Levy for Low-Value Goods
The EU is considering postponing the planned import levy on low-value goods, which was set to take effect in 2026. This levy targets the surge in low-value e-commerce imports, particularly from non-EU sellers, and was designed to create a fairer competitive environment for EU-based businesses by removing the VAT exemption on consignments below €150. A postponement could delay efforts to address tax fairness concerns in cross-border e-commerce. The proposal reflects ongoing debates about balancing trade facilitation with revenue collection and protecting domestic retailers from cheaper imports benefiting from current tax exemptions.
Punjab makes online property tax payments mandatory in Budget
Punjab province in Pakistan has made online property tax payments mandatory as part of its latest budget measures. The move aims to digitize property tax collection, improve compliance, and reduce leakage in the urban immovable property tax system. By requiring taxpayers to pay through digital channels, Punjab seeks to streamline revenue collection, enhance transparency, and broaden the tax base. The initiative reflects a broader push across Pakistani provinces to modernize tax administration and reduce reliance on manual, cash-based payment systems for local government revenues.
FBR offices to remain open on June 27-28
Pakistan's Federal Board of Revenue (FBR) has directed all its offices to remain open on June 27-28, which fall on a weekend, to facilitate taxpayers ahead of the fiscal year-end deadline. This move is aimed at ensuring continuity of tax collection and compliance activities, allowing taxpayers to file returns, make payments, and complete other tax-related obligations before the close of the financial year. The decision reflects FBR's effort to maximize revenue collection and provide administrative support during a critical period for tax compliance in Pakistan.
Tax on inherited property proposed
A proposal has been introduced in Pakistan to levy tax on inherited property, marking a significant shift in the country's personal income and property tax framework. The proposal aims to bring inherited real estate assets into the tax net, addressing wealth concentration and expanding the revenue base. If enacted, heirs receiving property through inheritance would face tax obligations on such transfers. The measure is part of broader fiscal reform discussions in Pakistan, reflecting efforts to enhance tax compliance and equity by taxing wealth transfers that have historically been exempt or under-taxed.
Accredited official statistics: HMRC tax receipts and National Insurance contributions for the UK
HMRC's accredited official statistics publication provides comprehensive data on UK tax receipts and National Insurance contributions. The statistics cover revenue collected across all major tax heads including income tax, corporation tax, VAT, excise duties, and NICs, offering a detailed view of the UK's tax revenue performance over time. These figures are widely used by policymakers, economists, and businesses to assess fiscal trends and government revenue health. The data provides an authoritative benchmark for understanding the scale and composition of UK tax collection across central government.
The history of UK capital gains tax in five charts
This article traces the evolution of UK capital gains tax (CGT) through five data visualisations, examining how rates, thresholds, and revenues have changed since CGT was introduced in the United Kingdom. The charts likely cover key reforms across successive governments, illustrating shifts in the tax burden on individuals and businesses disposing of assets. The historical perspective provides context for current policy debates around CGT reform, including rate alignment with income tax and changes to exemptions. Such analysis is relevant for tax professionals, policymakers, and investors assessing the long-term trajectory of UK capital gains taxation.
The payroll superhero problem: What last-minute saves can reveal about risk and control gaps
This article explores the 'payroll superhero' phenomenon, where employees repeatedly save payroll processes at the last minute, masking deeper systemic risks and control gaps. While these interventions may seem heroic, they indicate underlying weaknesses in payroll operations, compliance processes, and internal controls. The piece argues that organizations should treat these recurring rescues as warning signs rather than successes, urging payroll leaders to identify root causes, strengthen process controls, and reduce dependency on individual heroics. Addressing these gaps improves compliance reliability, audit readiness, and overall payroll risk management, ultimately creating more resilient and controlled payroll functions.
What exactly is direct tax?
This article provides an educational overview of direct taxes, explaining what they are, how they differ from indirect taxes, and the main types including income tax, corporate tax, and capital gains tax. It covers how direct taxes are levied directly on individuals and businesses based on income or profits, with the taxpayer bearing the full burden rather than passing it on. The piece outlines key characteristics, examples across jurisdictions, and the role direct taxes play in government revenue and fiscal policy, serving as a foundational explainer for those new to tax concepts.
Advisory panel urges sustained IRS funding, expanded AI, tax simplification
An advisory panel has recommended sustained IRS funding, expanded use of artificial intelligence, and broad tax simplification measures. The panel's recommendations aim to modernize IRS operations, improve taxpayer services, and streamline the U.S. tax system. The push for AI integration reflects growing interest in leveraging technology to enhance compliance, reduce processing times, and improve audit efficiency. Tax simplification proposals seek to reduce complexity for individual and business filers. The recommendations come amid ongoing debates over IRS resource levels following recent funding fluctuations, underscoring the importance of stable investment in the agency's long-term operational capacity.
The Energy Industry is Driving Innovation and the R&D Tax Credit Confirms It
The energy industry is increasingly leveraging R&D tax credits as it drives technological innovation across renewables, carbon capture, hydrogen, and grid modernization. The article explores how energy companies qualify for the federal R&D tax credit by conducting qualifying research activities, including developing new processes, improving energy efficiency, and advancing clean energy technologies. It highlights how these credits can significantly offset tax liability for energy firms investing in innovation, outlines the four-part test for qualifying activities, and encourages energy sector businesses to evaluate their eligibility to maximize available federal tax incentives.
Court Strikes Down Ballot Initiative to Lower Massachusetts Income Tax
A Massachusetts court has struck down a ballot initiative that sought to lower the state's income tax rate. The ruling prevents voters from having the opportunity to vote on reducing the personal income tax burden in Massachusetts. This decision has significant implications for taxpayers and fiscal policy in the state, as proponents of the initiative argued it would provide relief to residents, while opponents contended the revenue reduction would harm public services. The court's intervention highlights the legal complexities surrounding tax-related ballot measures and direct democracy mechanisms in state tax policy.
Maximizing Innovation Incentives: How the Orphan Drug Credit Can Outperform the R&D Tax Credit
This article compares the Orphan Drug Credit (ODC) with the traditional R&D tax credit for pharmaceutical and biotech companies developing treatments for rare diseases. The ODC can provide a 25% credit on qualified clinical testing expenses, potentially outperforming the standard R&D credit in certain scenarios. The piece explains eligibility requirements, how the credits interact, and strategic considerations for maximizing innovation incentives. It advises companies to evaluate both credits carefully, noting that the ODC may deliver superior tax benefits for qualifying orphan drug development activities under current US federal tax law.
Meta Says IRS Seeks 'Do-Over' Of Facebook Case
Meta is challenging the IRS in a high-stakes transfer pricing dispute over the Facebook case, arguing that the IRS is improperly seeking a 'do-over' of the litigation. The case centers on how Meta valued intellectual property transferred to an Irish subsidiary in 2010, with the IRS alleging billions in unpaid taxes. Meta contends the agency is attempting to relitigate settled factual findings from prior proceedings. The outcome could have significant implications for how multinational corporations structure intercompany IP transfers and the IRS's authority to revisit previously adjudicated transfer pricing determinations.
Del. Bill Seeks Intermediary Municipal Rental Tax Collection
A Delaware bill proposes requiring intermediary platforms to collect and remit municipal rental taxes on behalf of property owners, similar to marketplace facilitator models used for sales tax. The legislation targets short-term rental platforms and aims to streamline local tax compliance by shifting the collection burden from individual hosts to the intermediary. This approach mirrors rules already adopted in many states for sales tax and could simplify enforcement for municipalities while reducing non-compliance among small rental operators.
Trump Accounts Not Subject To ERISA, DOL Says
The U.S. Department of Labor has clarified that 'Trump Accounts' — the proposed tax-advantaged savings accounts for newborns included in recent legislative discussions — would not be subject to ERISA oversight. The DOL's position means these accounts fall outside traditional employer-sponsored retirement plan regulations, giving them a distinct legal structure. This determination has implications for how the accounts will be administered, taxed, and regulated, potentially affecting their attractiveness as savings vehicles and the applicable tax treatment of contributions and withdrawals.
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