In this update, we provide a summary of important VAT and Customs Tax developments from April 2026 with implications for global business operations.
Recent Danish VAT developments highlight the continued tightening and fact-specific nature of the fund management exemption, alongside increased focus on how services are structured and attributed within investment fund arrangements, reinforcing the need to distinguish between exempt fund management functions and separately identifiable taxable supplies.
In the American Express case, the French Supreme Administrative Court limits the use of the “beneficial owner/actual recipient” concept for the purpose of identifying the VAT taxable recipient of a service, recalling that contractual arrangements must prevail unless exceptional circumstances justify disregarding them.
The Italian Tax Authority clarified how medical device suppliers may recover VAT embedded in payback amounts paid to Italian Regions. The relevant VAT must be calculated analytically by reference to the original supplies and recovered through a credit note, as a reduction of the original price charged for the supplies to the NHS.
“Public‑sector real estate renovations; substance over form”.
UK UT overturns VAT relief for post supply rebates clarifying that VAT relief requires a direct link between rebate and consideration within the same supply chain, genuine reciprocity, careful identification of the customer, and impact to final consumer.