Advocate General Kokott Clarifies the Distinction Between Price Adjustments and Supplies of Services
Advocate General Kokott concludes that a contractual adjustment of an intra group sale price made to achieve an agreed profit margin does not in itself constitute a supply of services for VAT purposes, but merely alters the taxable amount of the underlying supply.
Draft VAT bill proposes extending the VAT adjustment period for certain renovation and conversion works from 5 to 15 years
In line with recent CJEU case law, a draft VAT bill proposes to extend the VAT adjustment period in Belgium to 15 years for renovation and conversion works with an economic lifespan comparable to that of the immovable property to which they relate, better reflecting the economic reality of such works.
Key Updates on PRC VAT General Taxpayer Registration Rules
The core of the new rules, effective on 1 January 2026, lies in revising the administrative framework that determines when a taxpayer must register as a general taxpayer and when that status becomes effective. These changes directly influence an entity’s tax classification and corresponding compliance obligations.
The Hidden Impact of Intra-company Loans
A recent Danish ruling confirms that intra-group loans may be excluded from the VAT pro rata as incidental financial transactions, yet the same loans can unexpectedly trigger special payroll tax registration and reporting obligations.
Transfer of VAT provisions from the French Tax Code to the Goods and Services Tax Code from 1 September 2026
A VAT recodification transferring the entire French VAT legislation, featuring complete renumbering and a redesigned structure is set to happen on 1 September 2026. It also modernises VAT terminology and, in places, reflects codified principles from CJEU without changing taxpayers’ substantive VAT position.
EU Levy on Low-Value Parcels Incoming as Netherlands Holds Off on National Handling Fees
The Netherlands has postponed plans for national handling fees on low-value parcels. Instead, they await the new EU-wide levy of EUR3 per item, effective 1 July 2026, targeting consignments valued at EUR150 or less.
New Italian handling fee of EUR2 on low value import from 1 January 2026
As part of the 2026 Budget Law, Italy has introduced a new customs contribution of EUR2 per shipment on low-value goods imported from non-EU countries. The measure applies to all shipments with a declared value not exceeding EUR150 and is effective for imports made from 1 January 2026.
In this input tax attribution case, UK FTT confirms product‑specific photography has no direct link to exempt credit supplies
The UK FTT held that Littlewoods could fully recover VAT on product specific photography used in its online and catalogue retail business on the basis that the costs had a direct and immediate link only to taxable retail supplies. The Tribunal rejected HMRC’s arguments that the costs were residual or linked to exempt activities (providing interest bearing flexible payment option i.e. credit), finding no direct and immediate connection to exempt credit supplies.
States Continue the Push to Impose Sales Tax on Electronic Services
Maryland joins other US states in extending sales and use taxes to a number of services provided electronically.