In this update, we provide a summary of important VAT developments from July & August with implications for global business operations.
The Belgian Council of Ministers has reached agreement on a preliminary draft law aimed at introducing near real-time reporting of invoice data to the tax authorities.
China has clarified when input VAT remains deductible for certain non-taxable supplies, while confirming non-deductibility for specified transactions such as cross-border supplies outside the Chinese VAT scope, equity transfers, dividend income and commodity futures trading.
The CJEU has cast doubt on Denmark’s strict 100% ownership requirement for certain VAT groups, finding that it may go beyond what is required under the VAT Directive. The final outcome will now depend on whether the Danish courts consider the rule justified as an anti-abuse measure.
France has deferred the entry into force of the VAT recodification into the French Code of Taxes on Goods and Services (CIBS), a codification without substantive changes, from 1 September 2026 to 1 January 2027. The additional four months will help businesses prepare for the rollout of France’s e-invoicing regime.
Germany’s Annual Tax Act 2026 fundamentally redesigns the VAT group (umsatzsteuerliche Organschaft) from mandatory to discretionary. The government draft defers application to 1 January 2030, with a first election possible from 1 July 2029. Groups with exempt output supplies should start planning now.
Low-value imports into Ireland and the wider EU now attract a €3 customs duty per product type from 1 July 2026, increasing landed costs and potentially affecting pricing, supply chains and marketplace arrangements.
Legislative Decree No. 148/2026, in force since 12 August 2026, extends the deadline for recovering input VAT on purchases and imports to the annual VAT return for the second year after the one in which the right to VAT recover arose, with invoice registration obligations aligned accordingly.
Dutch foundation that receives contributions for organizing and coordinating disciplinary proceedings for lawyers performs VAT taxable services for consideration according to Dutch Supreme Court.
The UK FTT held that Tapi Carpets acted as a disclosed agent when arranging independent floor fitters for customers. As the fitters supplied their services directly to customers, Tapi was required to account for VAT only on its arrangement fee, not the fitting fees.
Retailers Face Sales Tax Confusion in an Increasingly Penniless World.