The General Court of the CJEU clarifies the scope of VAT exempt negotiation services
The General Court clarifies the scope of the VAT exemption for credit intermediation services, confirming that the exemption applies where the intermediary has done all that is necessary for both parties to enter into a contractual agreement, even though it has no influence over the terms of this agreement.
New Belgian budget framework for the period 2026-2029 includes several indirect tax measures
The Belgian government recently agreed on a budget framework. This includes targeted VAT adjustments affecting hospitality and sports and leisure, together with revised energy excise duties, increased insurance premium tax, increased air passenger tax and a new parcel tax on small consignments from outside the EU.
Permanent VAT reduction for gastronomy and extended transition for public sector
Bundestag confirms that VAT on restaurant food will remain at 7% in 2026; VAT taxation of the public sector transition will also be extended to 2026 due to ongoing legal uncertainties.
Irish Revenue tightens VAT grouping rules: territorial scope restricted
Irish Revenue has announced major changes to VAT grouping rules. From now, only Irish establishments can join an Irish VAT group. Overseas branches and head offices are excluded, impacting cross-border VAT treatment and recovery. Transitional relief applies until 31 December 2026.
Barter transactions: the VAT taxable base shifts from fair value to costs
According to the draft Italian Budget Law, as of 1 January 2026, in barter transactions involving goods or services, the VAT taxable base will no longer be determined by market value of the items exchanged but by the costs incurred by the supplier in providing them, thereby aligning Italian rules with EU ones.
Reduced RETT Rate (8%) for investments in residential real estate
From 2026, a lowered real estate transfer tax rate of 8% will apply to residential properties. This includes properties acquired as investment, as well as second homes and holiday residences.
UK HC confirms HMRC should consider allowing input VAT recovery on robust alternative evidence – even where no VAT invoice exists
The High Court has ruled HMRC cannot rigidly deny input VAT recovery solely for missing invoices. Where businesses provide strong alternative evidence and take reasonable steps to obtain invoices from the supplier, but cannot obtain them, HMRC must exercise discretion fairly. This decision reinforces VAT neutrality and offers clarity for sectors facing practical invoicing challenges.
AI data centres present challenging indirect tax issues
In order to minimize state taxes, AI companies as well as owners and occupants of data centres, should consider the US state indirect tax implications (among other issues) associated with choice of location and investment structure.