9 October 2026
AskColm weekly digest - 9 October 2026
Hi all
On Monday I am speaking at the inaugural Tax Executives Institute event in Bangalore about the future of technology in the tax department. If you are going, please say hello.
What caught my eye this week?
France has clarified its VAT e-reporting rules following the launch in September, and Poland is already thinking about pre-filled VAT returns now that KSeF has been running for a while. Ireland is clarifying its move towards mandatory e-invoicing and digital reporting as part of its VAT reform, and Portugal has confirmed that SAF-T will cover 2027 records, with the first submission not due until 2028. I keep a note of these dates, and the note is now longer than some of the countries' own guidance.
On the enforcement side, the EU says 62 people have been detained over a €410 million electronics VAT fraud, and Bolt has been refused permission to appeal a £190 million VAT ruling. The ECJ and General Court have two judgments, an Advocate General opinion and a hearing scheduled before 5 November, if you have a case waiting on any of them.
Botswana has set up a VAT portal for non-resident digital service providers, and the 57th GST Council meeting in India approved some reforms and input tax credit changes. In the US, the Colorado Netflix case is a useful read on whether states can tax anything beyond digital product sales. Bloomberg reports that Ireland plans further changes to its R&D tax credit and IP incentives, IBFD has a summary of what changed in the OECD Model 2025, and there is a good piece on why taxing AI is awkward when labour is local and capital is not.
Last week I published a post called Compliance Is a Noun, Not a Verb. It is about treating compliance as something you build into the process so that it is correct from the start, instead of something you repeat every month and then check. If anyone on your team still validates VAT numbers by hand at month end, you might send it to them: https://askcolm.com/blog/compliance-is-a-noun-not-a-verb
Stay safe
Colm
Selected articles
You’re Going the Wrong Way!
A Tax Notes piece by University of Michigan law professor Reuven Avi-Yonah questions proposals to force large private businesses to convert to C corporations, examining what policy goals such a move would actually achieve. The piece challenges the fiscal illusion that corporations bear the cost of entity-level corporate tax, suggesting policymakers may be pursuing the wrong structural reforms.
Bloomberg: Ireland Plans More Changes to R&D Tax Credit, IP Incentives
Ireland plans to expand its R&D tax credit and extend refunds on intellectual property profits as part of its October budget. Finance Minister Simon Harris also announced changes to withholding taxes and committed to further implementation measures.
62 Detained In €410M Electronics VAT Fraud, EU Says
European authorities detained 62 people in Portugal, Spain, and Italy suspected of orchestrating a VAT fraud scheme involving electronics that caused at least €410 million in tax losses across the EU. The operation was coordinated across multiple jurisdictions and announced by prosecutors.
You Be the Tax Judge: The Verdict on a Money-Losing Horse Business
The US Tax Court ruled on a money-losing horse-breeding business, clarifying that sustained losses do not automatically classify an activity as a hobby. The decision is relevant to taxpayers engaged in activities with ongoing losses, as hobby classification disallows business expense deductions under personal income tax rules.
Credit for foreign tax: the curious case of Paul Bruyea
The US Court of Appeals, Federal Circuit ruled in Estate of Paul Bruyea v. United States (No. 25-1563) on August 31, 2026, addressing the foreign tax credit and double taxation. The case highlights an outcome that appears to run contrary to the core purpose of tax treaties, which is the avoidance of double taxation.
SaaS Subscription Fee Is Not “Royalty” Merely Because Technology Does the Work
ITAT Mumbai has ruled that SaaS subscription fees do not constitute 'royalty' simply because technology performs the underlying work. The tribunal held that access to a communication platform does not amount to use of a 'process' under Section 9(1)(vi) of the Income Tax Act or Article 12(3) of the India-Ireland DTAA, with implications for how digital service payments are classified and taxed in cross-border arrangements.
Bolt Refused Chance To Appeal £190M VAT Ruling
The UK Supreme Court has refused Bolt's appeal over its claim to use a VAT margin scheme that would have reduced its estimated VAT liability of £190 million. The ruling is a significant blow to the ride-hailing company, which said it was disappointed by the decision.
Botswana VAT Portal for Non-Resident Digital Service Providers
Botswana's VAT regime for non-resident remote service providers became fully effective from October 1, 2026. Foreign providers of remote services that are registered or required to register must begin collecting VAT. A dedicated VAT portal has been established for non-resident digital service providers to fulfill their compliance obligations.
57th GST Council Meet Approves Key Reforms & ITC Proposals
The 57th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman at Bharat Mandapam in New Delhi, approved key reforms including measures to resolve GST disputes and improve input tax credit flow. The meeting aimed at reducing time and complexity in GST compliance and dispute resolution.
How many times can you move to Monaco?
Dozens of news reports claim that property billionaire David Reuben, listed as number two on the UK Rich List, moved from London to Monaco this summer, reportedly pushed out by changes to UK tax rules.
Why AI is reshaping tax risks for India’s GCCs
Global capability centres using artificial intelligence to deliver services are exposing multinational enterprises to new risks around permanent establishment and transfer pricing, as existing compliance frameworks prove inadequate for the challenges AI presents.
Ireland’s VAT Reform Moves Toward Mandatory E-Invoicing and Digital Reporting
Ireland is advancing VAT reform that will introduce mandatory e-invoicing and digital reporting requirements, aligning with broader EU initiatives. The reform is expected to move businesses away from paper-based invoicing toward structured digital formats, with real-time or near-real-time VAT data reporting to Irish Revenue. This marks a significant compliance shift for Irish businesses and cross-border traders operating in Ireland. Practitioners should monitor upcoming legislative timelines, technical specifications, and phased implementation schedules as Ireland formalizes its digital VAT reporting framework.
Agenda of the ECJ/General Court VAT cases – 2 Judgments, 1 AG Opinion, 1 Hearing till November 5, 2026
A scheduled overview of upcoming European Court of Justice and General Court VAT cases, covering two forthcoming judgments, one Advocate General opinion, and one hearing through to November 5, 2026. The agenda tracks significant VAT litigation at the EU level, providing practitioners and advisers with visibility into cases that may shape VAT interpretation across member states. Monitoring these proceedings is important for tax professionals advising on EU VAT compliance, as ECJ rulings carry binding precedent across all member states.
From KSeF to Pre-Filled VAT Returns: Poland’s Next Phase of VAT Digitalisation Takes Shape
Poland is advancing its VAT digitalisation agenda beyond the KSeF mandatory e-invoicing system, with plans for pre-filled VAT returns and a new e-VAT reporting framework. KSeF penalties have been delayed until 2027, giving businesses additional time to comply, while authorities develop the KeKR pre-filled return system. This next phase signals a significant shift toward real-time VAT data integration, reducing manual filing obligations for taxpayers. Businesses operating in Poland should reassess their tax technology infrastructure to accommodate both the upcoming KSeF obligations and the broader digital VAT reporting changes.
VAT OSS vs. Local Registration: Which to Choose When Selling in the EU
Businesses selling goods or services in the EU must choose between registering for VAT under the One Stop Shop scheme or registering locally in individual member states. The right approach depends on factors including whether the business holds stock in warehouses, the nature of its sales and its plans for expansion across the EU.
France Clarifies VAT E-Reporting Rules After September 2026 Launch
Following the September 2026 launch of France's mandatory VAT e-reporting regime, French tax authorities have issued clarifications to address practical questions arising from early implementation. These clarifications likely cover reporting timelines, data formats, scope of transactions, and obligations for foreign businesses. France's e-reporting mandate requires businesses to transmit transaction data electronically to the tax authority via accredited platforms. The guidance is essential for businesses and their tax advisers to ensure compliant submissions and avoid penalties in the initial phase of the new regime.
Can states tax past digital product sales? The Colorado Netflix case explained
When a state changes its tax rules for digital products, sellers need to know whether the change applies retrospectively or only to future sales. Colorado's case against Netflix illustrates why this distinction matters and how the answer is determined.
The hitch in taxing AI: labour is local, capital isn’t
The article examines the structural challenge of taxing AI-driven economic activity, highlighting the fundamental mismatch between where labour income is generated and taxed locally versus where AI capital and profits accumulate, often in low-tax jurisdictions. As AI displaces traditional labour, tax bases built on payroll and personal income shrink, while corporate profits from AI capital concentrate in fewer locations. This creates pressure on existing international tax frameworks, raising questions about whether Pillar Two global minimum tax rules, digital services taxes, or new policy mechanisms are adequate to address the fiscal gap created by AI's capital-intensive, borderless nature.
What are the key changes included in the OECD Model 2025
The OECD Model (2025) introduces new guidance on cross-border remote work, addressing when an employee working from home or another location in a different country may create a taxable presence. The updates reflect growing international attention to the tax implications of remote and hybrid work arrangements across borders.
Portugal SAF-T Accounting Applies to 2027 Records, with First Submission in 2028
Portugal has postponed mandatory SAF-T Accounting requirements to cover records from 2027, with the first submission due in 2028. Businesses must also meet tax authority requirements and IES filing rules to remain compliant.
Summaries are AI generated and may contain errors. Check the original article before relying on them. Nothing here is tax advice.