A summary of important VAT and other Indirect Tax developments with implications for cross-border business operations.

September 2026

Belgium - Belgium prepares to implement the first phase of EU VAT in the Digital Age package

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China - China issues administrative measures clarifying VAT withholding procedures for specified services supplied by domestic individuals

Germany - Can an unmanned, remotely operated plant be a VAT fixed establishment? The BFH asks the CJEU

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Italy - Italian Tax Authority clarifies VAT treatment of colocation services with exclusive use of data center space

Netherlands - The Dutch government plans to abolish the reduced VAT rate for floriculture from 2028

United Kingdom - FTT denies GBP569,000 VAT recovery where taxpayer failed to substantiate the nature of taxable supplies received

Summer 2026

Belgium - Belgium takes next step in VAT digitalisation with near real-time e-reporting proposal

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China - VAT clarification on input tax recovery and non-taxable transactions

Denmark - CJEU questions Danish 100% ownership requirement for VAT groups

France - France delays the entry into force of VAT recodification into the CIBS until 1 January 2027

Germany - Germany to replace the automatic VAT group with an elective regime

Ireland - New customs charge introduced for low-value imports into the EU

Maura Dineen, Roisin Cronin
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Italy - Italy extends the deadline for exercising the right to recover input VAT

Netherlands - Dutch Supreme Court rules on VAT treatment of support services rendered by foundation to disciplinary tribunals

United Kingdom - Principal or agent? Tribunal rejects HMRC's VAT assessment

United States - Congress Addresses Treatment of Cash Retail Transactions in the Absence of Pennies

June 2026

European Union - EU Tribunal rules that VAT exemption for credit management by those who granted it does not apply after credit assignment

Belgium - Belgian VAT authorities restrict the scope of “non-transfer of own goods” regime for temporary cross-border movements

Germany - Germany draft Annual Tax Act 2026 proposes opt-in VAT grouping regime

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Italy - Barter transactions: Italy finalises the new VAT taxable base rules

The Netherlands - Dutch Court confirms application of Dutch VAT medical exemption for commercial medical testing services

United Arab Emirates - UAE customs classification updates: The window to prepare is closing

United Kingdom - UK VAT Grouping – Fixed establishment and protection of the revenue

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United States of America - Washington State expands Indirect Taxes to include Information Technology, Website Development and Software Development services

May 2026

European Union - TP adjustments and consideration for a VAT taxable supply

Ireland - VAT treatment of debt factoring clarified following Revenue TDM update

Maura Dineen, Róisín Cronin

Italy - Italian Tax Authority confirms VAT exemption for import of personal yachts of new Italian residents

The Netherlands - The Dutch Court of Appeal clarifies entitlement of taxpayers to late payment interest in case of VAT repayment claims

Romania - No Time Limit on Carrying Forward Negative VAT Balances

Spain - Spanish Tax Authority clarifies foreign VAT refund eligibility of US businesses

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United States of America - California Eyes a Landmark Sales Tax Expansion on Digital Software and SaaS

United Kingdom - Marketplace VAT errors don’t shift legal liability

April 2026

Denmark - Indirect tax in financial services: continued refinement of fund management exemption and service structuring

France - French Supreme Administrative Court reaffirms primacy of contractual reality for assessing VAT recipient of a supply

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Italy - Italian Tax Authority clarifies the procedure for VAT recovery on medical devices payback

The Netherlands - VAT deduction denied for school renovation due to abuse of law

United Kingdom - When post supply rebates do (and do not) reduce VAT

March 2026

European Union - CJEU rules that loyalty programme points do not constitute vouchers for VAT purposes

Belgium - Entry into force as from 1 May 2026 of certain previously postponed VAT chain measures

Germany - German Federal Fiscal Court held that mandatory pharmaceutical rebates must be split into net and VAT components

Italy - Italy postpones the handling fee on low-value imports to July 2026

The Netherlands - E-invoicing and digital reporting in the Netherlands, current status and what lies ahead

United Kingdom - Funding or fee? Court of Appeal confirms when public grants are taxable consideration for VAT

February 2026

Belgium - New Belgian Royal Decree clarifies VAT recovery right in the context of mandatory e invoicing

Ireland - Irish Revenue clarifies scope and timing of Ireland’s phased B2B e-invoicing regime

Maura Dineen, Róisín Cronin
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Italy - Italian Tax Authority aligns with case law on MLBO transaction costs recoverability and clarifies how to recover VAT prudentaly non deducted

The Netherlands - Dutch Court of Appeal rules that Dutch legal obligation to appoint a fiscal representative for applying a 0% VAT rate constitutes violation of EU law

Singapore - Singapore GST: Heightened Audit Focus on Intercompany Recharges and Reverse Charge Exposure

United Kingdom - VAT treatment of prepaid and access based business models

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United States of America - Penny Phase-Out Creates Multistate Sales Tax Compliance Challenges

January 2026

European Union - Advocate General Kokott Clarifies the Distinction Between Price Adjustments and Supplies of Services

Belgium - Draft VAT bill proposes extending the VAT adjustment period for certain renovation and conversion works from 5 to 15 years

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China - Key Updates on PRC VAT General Taxpayer Registration Rules

Denmark - The Hidden Impact of Intra-company Loans

France - Transfer of VAT provisions from the French Tax Code to the Goods and Services Tax Code from 1 September 2026

The Netherlands - EU Levy on Low Value Parcels Incoming as Netherlands Holds Off on National Handling Fees

Daan Arends, Jesse Peeters, Nick Schmidt
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Italy - New Italian handling fee of EUR2 on low value import from 1 January 2026

United Kingdom - In this input tax attribution case, UK FTT confirms product specific photography has no direct link to exempt credit supplies

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United States - States Continue the Push to Impose Sales Tax on Electronic Services

November 2025

Belgium - New Belgian budget framework for the period 2026-29 includes several indirect tax measures

European Union - The General Court of the CJEU clarifies the scope of VAT exempt negotiation services

Germany - Permanent VAT reduction for gastronomy and extended transition for public sector

Ireland - Irish Revenue tightens VAT grouping rules: territorial scope restricted

Maura Dineen, Róisín Cronin

Italy - Barter transactions: the VAT taxable base shifts from fair value to costs

The Netherlands - Reduced RETT Rate (8%) for investments in residential real estate

United Kingdom - UK HC confirms HMRC should consider allowing input VAT recovery on robust alternative evidence – even where no VAT invoice exists

United States of America - AI data centres present challenging indirect tax issues