Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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VAT in real time: Key takeaways from the 8th Annual VAT Management Summit
The 8th Annual VAT Management Summit highlighted critical developments in VAT compliance, with a strong focus on real-time reporting and e-invoicing mandates sweeping across jurisdictions. Key takeaways included the accelerating shift toward continuous transaction controls (CTCs), the operational challenges businesses face in adapting ERP systems to meet new digital reporting requirements, and the growing complexity of managing VAT across multiple jurisdictions simultaneously. Speakers emphasized the importance of data quality, tax technology investment, and cross-functional collaboration between finance and IT teams. The summit also addressed evolving VAT rules for digital services and the increasing scrutiny from tax authorities leveraging real-time data analytics.
EU and Brazil deepen ties through Digital Partnership
The European Union and Brazil have formalized a Digital Partnership aimed at deepening cooperation across digital economy areas including digital trade, data flows, digital infrastructure, and technology governance. While primarily a broad digital cooperation framework, the partnership has significant implications for tax professionals monitoring cross-border digital services taxation, e-invoicing interoperability, and regulatory alignment between the two jurisdictions. Brazil's advanced NF-e e-invoicing system and the EU's evolving ViDA (VAT in the Digital Age) framework may form part of technical exchanges. The partnership signals growing EU-Brazil regulatory convergence, relevant for multinationals navigating compliance obligations across both markets.
Comments on T-444/25 (Cavert) – General Court Rules VAT Groups Are Not Single Legal Entities
The EU General Court ruled in case T-444/25 (Cavert) that VAT groups do not constitute single legal entities for VAT purposes. The judgment clarifies the legal character of VAT grouping arrangements under EU VAT law, confirming that member companies within a VAT group retain their individual legal identities despite being treated as a single taxable person for VAT compliance purposes. This distinction has significant practical implications for contractual liability, litigation standing, and regulatory obligations of VAT group members. Tax professionals advising businesses operating within VAT groups should reassess structural arrangements and internal agreements in light of this clarification of the boundaries of VAT group consolidation.
Apply for approval for Vaping Products Duty and the Vaping Duty Stamps Scheme
HMRC has published guidance on how businesses can apply for approval to participate in the Vaping Products Duty (VPD) and the Vaping Duty Stamps Scheme in the UK. Vaping Products Duty, introduced in October 2026, applies to vaping liquids and substances, with registered businesses required to obtain duty stamps for their products. The guidance outlines the application process, eligibility requirements, and obligations for manufacturers, importers, and warehousekeepers handling vaping products. Businesses must register with HMRC before the duty takes effect to ensure compliance. The scheme mirrors existing tobacco duty stamp arrangements, aiming to combat illicit trade in the vaping sector.
Ministry of Finance Launches KSeF 2.0 Consultations as First Two Waves of Mandatory B2B E-Invoicing Go Live
Poland's Ministry of Finance has launched consultations on KSeF 2.0, the next iteration of its National e-Invoicing System, as the first two waves of mandatory B2B e-invoicing implementation go live. KSeF requires businesses to issue and receive structured invoices through a centralized government platform. The consultations aim to gather stakeholder feedback on enhancements and refinements to the system ahead of broader rollout phases. This development marks a significant milestone in Poland's digital tax compliance infrastructure, affecting all VAT-registered businesses operating in the country. Tax professionals should monitor KSeF 2.0 developments closely as further mandatory phases are expected to follow for smaller enterprises.
Technical Note 2026.004 v.1.01 Published – Alphanumeric CNPJ Schemas Released and Testing Postponed
Brazil's tax authority has published Technical Note 2026.004 v.1.01, introducing updated XML schemas supporting the new alphanumeric CNPJ (Cadastro Nacional da Pessoa Jurídica) format for electronic invoicing. The update releases revised schemas compatible with the alphanumeric taxpayer identification number, which is being introduced to expand Brazil's business registry capacity. Testing for the updated schemas has been postponed, giving taxpayers and technology providers additional time to adapt their systems. This development is significant for businesses operating in Brazil that must ensure their e-invoicing infrastructure and ERP systems are updated to handle the new alphanumeric CNPJ format before mandatory implementation.
Tax authorities’ Self-assessment tool to help businesses understand their obligations
Tax authorities have introduced a self-assessment tool designed to help businesses better understand and comply with their tax obligations. The tool aims to guide businesses through their relevant requirements, providing clarity on applicable rules and responsibilities. This initiative supports compliance by enabling businesses to self-identify their obligations before engaging with tax authorities, potentially reducing errors and penalties. The tool is particularly relevant for VAT/GST compliance, helping businesses navigate complex registration, reporting, and payment requirements. Tax professionals should be aware of this resource as it may streamline client onboarding and compliance reviews, offering a structured framework for assessing business tax positions across relevant tax heads.
Chile: Simplified VAT regime extended to foreign online gambling platforms
Chile has extended its simplified VAT registration regime to foreign online gambling platforms, requiring non-resident operators to register, collect, and remit VAT on services provided to Chilean consumers. This measure aligns online gambling with Chile's broader digital services VAT framework, which previously applied to streaming, software, and other digital services. Foreign platforms without a local establishment can comply through a simplified registration process rather than full local entity registration. The move reflects Chile's ongoing effort to capture VAT revenue from cross-border digital consumption and level the playing field between domestic and foreign operators in the online gambling sector.
Official Statistics: Schedule of updates and announcements for HMRC's statistics
HMRC has published or updated its schedule of upcoming statistical releases and announcements. This official statistics notice outlines the planned publication dates for various HMRC data sets covering a wide range of tax heads including income tax, VAT, corporation tax, and other revenue streams. Tax professionals and researchers can use this schedule to anticipate when key compliance, revenue, and taxpayer behaviour data will become available. The schedule serves as a forward-looking calendar for HMRC's statistical outputs, enabling practitioners, policymakers, and analysts to plan research, reporting, and advisory work around the release of authoritative UK tax data.
UK overseas trade in goods statistics April 2026: import and export data
The UK government has released overseas trade in goods statistics for April 2026, providing detailed import and export data. These statistics are essential for tax professionals involved in customs duty calculations, VAT on imports, and trade compliance. The data tracks the volume and value of goods crossing UK borders, informing customs duty liability assessments, rules of origin determinations, and import VAT obligations. The figures are particularly relevant for businesses navigating post-Brexit trading arrangements, tariff classifications, and customs declarations. Tax and trade advisers use these datasets to benchmark client trading patterns, identify duty optimisation opportunities, and ensure accurate customs valuation reporting.
Accredited official statistics: UK overseas trade in goods statistics: April 2026
This UK government statistical release provides accredited official data on UK overseas trade in goods for April 2026. The statistics cover import and export flows of physical goods between the UK and its international trading partners, offering detailed breakdowns by commodity type and trading partner country. For tax professionals, these figures are relevant to customs duty assessments, import VAT calculations, and transfer pricing benchmarking for cross-border goods transactions. The data also informs analysis of trade policy impacts post-Brexit and assists with compliance monitoring for customs and excise purposes. Such statistics are widely used by practitioners advising on supply chain restructuring and customs valuation.
UK accountancy is splitting in two. Where does your firm stand?
The UK accountancy profession is undergoing a structural bifurcation, with firms increasingly polarising between large, technology-driven practices capable of handling complex compliance and advisory work, and smaller firms at risk of being left behind. The divide is being accelerated by digital transformation, regulatory change, and evolving client expectations. Firms must assess their positioning amid growing automation, AI adoption, and shifting service demands. For tax professionals, the split raises questions about capacity to handle sophisticated areas such as international tax, transfer pricing, and compliance obligations, as well as the ability to invest in talent and technology needed to remain competitive in a consolidating market.
Philippines – VAT on Digital Services: New Requirements for Overseas Providers 2026
The Philippines is implementing new VAT requirements for overseas digital service providers effective 2026. Foreign companies supplying digital services to Philippine consumers will face mandatory VAT registration, collection, and remittance obligations. The regime targets non-resident providers of streaming, software, digital advertising, and similar services. Key requirements include registration thresholds, compliance timelines, and penalties for non-compliance. This follows global trends of applying consumption taxes to cross-border digital services. Affected businesses must assess their Philippine customer base, register with the Bureau of Internal Revenue (BIR), and establish systems for invoicing and tax remittance ahead of the 2026 implementation deadline.
2027 HSA Limits Are Up: Here’s What Employers Should Do Now
The IRS has announced increased Health Savings Account (HSA) contribution limits for 2027, requiring employers to review and update their benefit plan designs. For tax professionals advising employers, the adjustments affect pre-tax payroll deductions and employer contributions to HSAs, which are exempt from federal income and payroll taxes. Employers should update cafeteria plan documents, communicate changes to employees, and review high-deductible health plan (HDHP) minimum deductible thresholds, which also adjust for 2027. Early action is recommended to ensure payroll systems, benefits administration platforms, and plan documents reflect the new limits before open enrollment periods begin.
Ex-Bank Chief Admits Role In Odebrecht Tax Evasion Plot
A former bank chief has admitted involvement in a tax evasion scheme connected to Odebrecht, the Brazilian construction conglomerate at the center of one of Latin America's largest corruption scandals. The admission relates to facilitating financial structures used to conceal income and evade tax obligations as part of the broader Odebrecht bribery and corruption network. Odebrecht, now rebranded as Novonor, previously faced multi-jurisdictional investigations involving bribery of government officials across numerous countries. This latest development highlights the ongoing legal proceedings stemming from the scandal, with financial institution executives facing accountability for enabling tax evasion through sophisticated banking arrangements.
IRS Restructures Security Summit to Better Tackle Tax-Related ID Theft and Fraud
The IRS has restructured its Security Summit, a public-private partnership established in 2015 between the IRS, state tax agencies, and the tax industry, to more effectively combat tax-related identity theft and fraud. The reorganization aims to modernize the coalition's approach by streamlining operations and enhancing collaboration among stakeholders. The restructured Summit will focus on improving authentication measures, data sharing, and fraud detection capabilities across federal and state tax systems. This initiative reflects ongoing efforts to protect taxpayers and the tax administration system from increasingly sophisticated identity theft schemes that cost billions annually in fraudulent refund claims.
Revised Microcaptive Rules Still Violate APA, 6th Circ. Told
The Sixth Circuit is being urged to find that revised IRS microcaptive insurance transaction rules still violate the Administrative Procedure Act (APA). Challengers argue the updated regulations, which target captive insurance arrangements the IRS considers abusive tax shelters, were not properly promulgated and lack adequate notice-and-comment rulemaking. Microcaptive transactions involve small captive insurance companies making 831(b) tax elections to exclude premium income from taxation. The IRS has long scrutinized these arrangements as listed transactions. The appeal follows lower court proceedings and is part of ongoing litigation challenging the procedural validity of IRS guidance targeting these structures under U.S. tax law.
IRS Provides Year in Review in 2025 Data Book
The IRS has released its 2025 Data Book, providing a comprehensive statistical overview of IRS activities during fiscal year 2025. The annual publication covers key metrics including tax return filings, examination and audit rates, collection activities, taxpayer service statistics, and enforcement outcomes. For tax professionals, the Data Book serves as an essential reference for understanding IRS operational trends, audit selection patterns, and compliance enforcement priorities. The data helps practitioners benchmark client risk profiles against national audit rates across various taxpayer categories, including individuals, corporations, and pass-through entities, while also tracking IRS resource allocation and strategic enforcement focus areas.
Treasury, IRS Provide Section 892 Tax Relief for Sovereign Investors
The U.S. Treasury and IRS have issued guidance providing tax relief under Section 892 of the Internal Revenue Code for sovereign investors, including foreign governments and their controlled entities. Section 892 generally exempts foreign governments from U.S. tax on certain investment income, including interest, dividends, and gains from U.S. securities. The new relief addresses specific compliance or structural concerns affecting sovereign wealth funds and similar entities investing in U.S. markets. This guidance is significant for international sovereign investors navigating U.S. withholding tax obligations and eligibility requirements, potentially broadening or clarifying the scope of exemptions available to qualifying foreign governmental entities investing in the United States.
The clock is already running: What the new customs enforcement executive order means for your compliance program
A new US customs enforcement executive order has significant implications for corporate compliance programs, with enforcement timelines already underway. The article examines the order's requirements for importers, focusing on heightened scrutiny of customs valuations, classification accuracy, and country-of-origin declarations. Tax and trade professionals must urgently review supply chain structures, importer-of-record arrangements, and existing customs bond coverage. The order signals aggressive enforcement by US Customs and Border Protection, with potential penalties for non-compliance. Companies should conduct internal audits, assess exposure on prior entries, and implement robust customs compliance frameworks to mitigate risk under the new enforcement regime.
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