Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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The UK’s Transfer Pricing Landscape Is Entering a New Era of Scrutiny
The UK's transfer pricing regime is undergoing significant transformation, with HMRC intensifying scrutiny of intercompany transactions amid legislative reforms. The article examines evolving compliance expectations, including updated documentation requirements and increased audit activity targeting multinational enterprises operating in or through the UK. HMRC is aligning closer with OECD guidelines while introducing domestic-specific requirements that demand greater transparency in related-party dealings. Tax professionals must reassess existing transfer pricing policies, particularly around intragroup services, intellectual property arrangements, and financial transactions. The piece highlights the importance of robust contemporaneous documentation and proactive engagement with HMRC to mitigate dispute risks in this heightened enforcement environment.
Austria – 4.9% VAT rate approved
Austria has approved a new reduced VAT rate of 4.9%, representing a significant development in the country's indirect tax framework. This super-reduced rate is expected to apply to specific categories of goods or services, adding a new tier to Austria's existing VAT rate structure. Tax professionals advising businesses operating in Austria should assess the impact on pricing, invoicing, and compliance obligations. The introduction of this rate may require updates to accounting systems, VAT returns, and supply chain documentation. Businesses should review which supplies qualify under the new rate and ensure timely implementation to avoid misclassification penalties under Austrian VAT law.
Practical Guide – Australia GST and Customs Duties for Cross-Border E-Commerce Sellers
This practical guide covers Australia's GST and customs duty obligations for cross-border e-commerce sellers. It addresses the Low Value Imported Goods (LVIG) regime, which applies GST at 10% on goods valued at AUD 1,000 or below sold to Australian consumers, with liability falling on offshore sellers, electronic distribution platforms, or re-deliverers meeting the AUD 75,000 registration threshold. The guide also outlines customs duty requirements for higher-value consignments, import declarations, and tariff classifications. Key compliance considerations include registration obligations, marketplace operator responsibilities, record-keeping requirements, and the interaction between GST and customs duty on imported goods, providing actionable guidance for international sellers targeting the Australian market.
United Kingdom: Tribunal clarifies VAT liability for Amazon marketplace sales
A UK tribunal has issued a ruling clarifying VAT liability for sales made through the Amazon marketplace. The case addresses the complex question of who bears VAT responsibility in marketplace transactions — the platform operator or the third-party seller. This decision is significant for e-commerce businesses operating through Amazon and similar digital marketplaces in the UK, as it provides clearer guidance on VAT obligations following post-Brexit rules that made online marketplaces deemed suppliers for VAT purposes. Tax professionals advising clients on marketplace commerce should review the ruling to assess compliance obligations and potential historical VAT exposure for both platforms and sellers.
Targeting High Earners is Misguided and Will Worsen States’ Fiscal Positions
This Tax Foundation article argues that targeting high earners through elevated income taxes is counterproductive and will ultimately damage states' fiscal positions. The analysis contends that high-income individuals are mobile and responsive to tax rate increases, making aggressive taxation of top earners likely to drive wealth migration to lower-tax states. This erosion of the high-earning tax base weakens long-term revenue stability. The piece warns that states pursuing such policies risk undermining their economic competitiveness, reducing investment, and creating structural budget vulnerabilities, ultimately leaving them in a worse fiscal position than before the tax increases were implemented.
Don’t miss out on benefits and credits: Why filing your taxes matters
The Canada Revenue Agency (CRA) emphasizes the importance of filing tax returns to access government benefits and credits available to Canadian residents. Even individuals with little or no income are encouraged to file, as many federal and provincial benefits—such as the GST/HST credit, Canada Child Benefit, and Old Age Security supplements—are triggered by annual tax filings. The CRA highlights that non-filers risk missing out on significant financial entitlements. The article also touches on protecting personal information during tax season, warning Canadians to remain vigilant against scams and threats to their tax data, particularly as filing deadlines approach.
IRS proposes increase in cost of estate tax closing letter
The IRS has proposed increasing the fee for estate tax closing letters, which are issued upon completion of estate tax return examinations. These letters serve as confirmation that the IRS has accepted the estate tax return and closed the file, providing certainty for executors and beneficiaries before distributing estate assets. The proposed fee increase reflects the IRS's efforts to recover administrative costs associated with processing estate tax cases. Tax practitioners advising estates and executors should factor the revised fee into estate administration planning. The change may also prompt consideration of alternative account transcripts, which are currently available at no cost as a substitute for the closing letter.
The Compliant AP Tech Stack: What You Need and Why
This article from Sovos examines the technology components required for a compliant accounts payable (AP) function in the context of evolving global VAT and e-invoicing mandates. It outlines how businesses must integrate solutions capable of handling continuous transaction controls (CTCs), real-time invoice validation, and tax determination within their AP workflows. Key components discussed include e-invoicing platforms, tax engines, and ERP integrations that ensure incoming invoices meet local compliance requirements. As tax authorities worldwide digitise VAT reporting and mandate structured invoice formats, businesses face increasing pressure to modernise AP infrastructure to avoid penalties and maintain input tax recovery rights.
The Scope of Personal Liability for Trust Fund Tax in the State of New York
This article examines personal liability for trust fund taxes in New York State, focusing on when individuals—such as corporate officers, directors, or employees—can be held personally liable for a business's failure to remit withheld payroll taxes. New York's Tax Law imposes 'responsible person' liability on those who willfully fail to collect or pay over withheld taxes, including sales tax and payroll withholding. The article analyzes the legal standards for determining 'responsible person' status, the willfulness requirement, and relevant case law. It provides practical guidance for tax professionals advising clients on minimizing personal exposure in trust fund tax disputes.
2026 sales tax software comparison: Find the right tool for your business
This article provides a comparative guide to sales tax software solutions for businesses heading into 2026. It evaluates key platforms to help businesses select the most appropriate tool based on their specific compliance needs, transaction volumes, and integration requirements. The comparison likely covers features such as automated tax calculation, filing capabilities, nexus tracking, exemption certificate management, and e-commerce integrations. Aimed at businesses navigating the complex US sales tax landscape — particularly following the South Dakota v. Wayfair ruling — the guide assists tax professionals and business owners in identifying software that streamlines multi-state compliance obligations and reduces manual administrative burden.
Czech Republic: ViDA transposition bill submitted
The Czech Republic has submitted a bill to transpose the EU VAT in the Digital Age (ViDA) package into national legislation. ViDA represents a significant overhaul of EU VAT rules, introducing mandatory e-invoicing, digital reporting requirements, and updated rules for platform economy operators. The transposition bill signals the Czech Republic's progress toward implementing these EU-wide reforms, which aim to modernize VAT compliance, reduce fraud, and harmonize digital reporting across member states. Tax professionals operating in or with Czech entities should monitor the bill's progress, as it will introduce new obligations around real-time transaction reporting and structured electronic invoicing.
HSA inflation-adjusted maximum contribution amounts for 2027 announced
The IRS has announced inflation-adjusted maximum contribution limits for Health Savings Accounts (HSAs) for 2027. These annual adjustments reflect changes in the consumer price index and affect individuals and families enrolled in high-deductible health plans (HDHPs). The updated figures are relevant for tax planning purposes, as HSA contributions are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses. Tax professionals should advise clients to review their contribution strategies in light of the new limits to maximize available tax benefits. Employers sponsoring HSA-compatible health plans should also update payroll and benefits administration systems accordingly.
Financial Transaction Taxes in Europe, 2026
This Tax Foundation analysis examines financial transaction taxes (FTTs) across European countries as of 2026. FTTs are levies applied to the buying and selling of financial instruments such as stocks, bonds, and derivatives. The article maps which European nations currently impose FTTs, their respective rates, and the scope of instruments covered. FTTs remain controversial among tax professionals due to concerns about market liquidity, potential capital flight, and revenue efficiency. Several EU member states maintain distinct FTT regimes, while an EU-wide harmonised FTT proposal has faced prolonged political resistance. The data provides a comparative reference for advisers dealing with cross-border securities transactions and investment structuring within Europe.
The Risks the Wealth Tax Advocates Are Ignoring
This Tax Foundation op-ed critiques wealth tax proposals, likely focusing on California's proposed wealth tax, highlighting risks that proponents tend to overlook. Key concerns typically addressed include capital flight, where high-net-worth individuals relocate assets or domicile to lower-tax jurisdictions, valuation difficulties for illiquid assets such as private business interests and real estate, potential constitutional challenges, and adverse economic effects including reduced investment and innovation. The analysis argues that projected revenue gains are overstated while compliance costs and economic distortions are underestimated, questioning whether wealth taxes achieve their stated redistributive goals without significant collateral damage to state and national economies.
PPWR: EU Packaging Waste Regulations
The EU Packaging and Packaging Waste Regulation (PPWR) represents a significant overhaul of packaging rules across the European Union, introducing mandatory recyclability standards, reduced packaging waste targets, and extended producer responsibility (EPR) schemes. For businesses, compliance will require adjustments to packaging design, supply chains, and reporting obligations. The regulation impacts importers, manufacturers, and retailers operating within EU markets, with VAT and customs implications arising from packaging cost structures and cross-border trade adjustments. Tax professionals should note how EPR fees and compliance costs may affect deductibility calculations and transfer pricing arrangements for multinational groups operating across EU member states.
Spanish B2B e-invoicing technical guidance published
Spain has published technical guidance for its mandatory B2B e-invoicing system, advancing the country's implementation of electronic invoicing requirements for business-to-business transactions. The guidance provides technical specifications that businesses and their technology providers must follow to comply with the upcoming mandate. This follows Spain's Crea y Crece law, which established the legal framework for mandatory B2B e-invoicing. Tax professionals and finance teams operating in Spain should review the technical documentation to assess system readiness, ensure compliance with formatting and transmission requirements, and plan integration timelines ahead of the implementation deadlines affecting Spanish-registered businesses.
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