In this update, we provide a summary of important VAT developments from February with implications for global business operations.
The Royal Decree of 17 December 2025 has brought additional legal certainty by aligning the formal conditions for exercising the right to recover input VAT with the new mandatory Belgian e-invoicing regime.
Revenue has confirmed who will fall within phase one of Ireland’s VAT modernisation programme and clarified that all VAT‑registered businesses must be capable of receiving structured e‑invoices ahead of mandatory issuance obligations.
Resolution No. 7/2026 marks a shift in the Italian Tax Authority’s approach to VAT recovery on MLBO “transaction costs”, aligning administrative practice with CJEU and Supreme Court case law. Ruling No. 58/2026 complements this change by clarifying the procedural route and key requirements to recover VAT prudentially not deducted under the former restrictive stance.
The condition imposed by the Dutch tax authorities for appointing a fiscal representative which solely applies to taxpayers established outside the Netherlands for applying a 0% VAT rate constitutes an unjustifiable violation of EU law.
Singapore’s tax authority has intensified its GST enforcement, with increased audit activity and greater use of data analytics. Cross-border intercompany recharges, reverse charge compliance and zero-rating positions adopted by regional headquarters are key risk areas and require proactive review.
The UK Upper Tribunal confirmed that Lycamobile’s prepaid bundles were supplies of access to services, which customers bought as an end in themselves. VAT was therefore due on the full price when the bundle was sold, not when the allowances within the bundle were later used.
The U.S. Mint produced its last penny in November 2025, but most states still require sales tax calculations to the penny. With no federal rounding guidance, a patchwork of state rules is emerging – creating compliance headaches for retailers conducting cash transactions.