CJEU Ruling Sheds Light on VAT Pricing Rules
Services provided by parent companies to their subsidiaries under a management services agreement are not necessarily to be viewed as one single taxable supply whose market value is impossible to determine due to the absence of equivalent services between non-related parties.
Heavy fines due in Belgium in case of VAT abuse
In the first part of this year, further Belgian higher court case-law has been published supporting the application of heavy fines in case of VAT abusive practices. Whilst the case-law to date relates mainly to real estate development, its chilling effect on VAT optimisation schemes extends across all sectors.
Draft Implementation Regulations of the Value Added Tax Law of the People's Republic of China
The PRC Value-Added Tax Law (the VAT Law) was officially introduced in December 2024 and will come into effect on 1 January 2026. To ensure the smooth implementation of the VAT Law, the Ministry of Finance and the State Administration of Taxation issued the Draft Implementation Regulations of the VAT Law (Draft Regulations) for public consultation on 11 August 2025.
German Court to Clarify Fundamental Difference Between Customs Duty and Import VAT
A referral from a German court concerning a simple boat repair highlights an often-overlooked but costly basic rule: customs duty and import VAT are not the same. A formal error at the border does not automatically mean that a consumption tax is due.
Italian Tax Authority confirms conditions for transfer pricing adjustments being subject to VAT
The Italian Tax Authority had the opportunity to further clarify the conditions under which a transfer pricing adjustment falls within the scope of VAT, confirming the crucial role of a clear and documented link to the original supplies. The ruling also shows how both TP policies and contractual provisions may directly influence the VAT treatment of such adjustments.
Dutch Court of Appeal rules that outsourcing payment processing is covered by VAT exemption
The Court of Appeal ruled that in this case, outsourced payment processing services qualified for a VAT exemption.
Revised VAT rates came into effect on August 1, 2025
Romanian has enacted the VAT rates increase, as previously announced.
Economic Reality Prevails: VAT Tribunal Rules on Consideration in Multi-Party Arrangements
UK First-tier Tribunal has ruled that security bonds paid by trainee pilots to Airline Placement Ltd were consideration for a VATable supply of training taking into account the importance of economic reality and contractual substance in determining VAT liability.
Proposed Amendments to California Sales and Use Tax Regulations for Software and Technology Transfer Agreements
Clarifying the Code: Simplifying California’s Sales Tax Rules for Software and Technology Transfer Agreements - Bringing Certainty, Consistency, and Compliance to the Digital Marketplace.