VAT news & updates
across 150+ countries.

India: The Gauhati High Court has ruled that Hawkins Cookers Ltd. must pay an additional 8.5% VAT on the original sale price of pressure cookers, confirming the 12.5% rate applied before 2010. The court rejected the company's attempt to compute the differential tax on a reduced sale price after excluding previously collected 4% VAT.

The Gambia The Gambia Revenue Authority has approved an electronic invoicing system for VAT and other taxes, effective from 22 June 2026. The system aims to improve compliance and modernise tax administration as part of the government's digitalisation agenda.

Denmark: The European General Court issued a preliminary ruling on 15 July 2026, stating that EU Directive 2006/112 precludes Danish national law requiring 100% ownership for VAT exempt or non-economic activities in VAT group registration. The ruling affects Danish insurance companies seeking VAT group registration with management companies holding less than full ownership.

India's GST framework allows businesses to claim Input Tax Credit on hotel accommodation when the stay is for business purposes. Eligibility depends on valid tax invoices, GST paid, and compliance with CGST Act sections 16 and 17(5). A minimum room rate of 7500 is required for ITC eligibility.

Latvia's Administrative Regional Court upheld a VAT refund of EUR 143,844 for German firm Bauer Spezialtiefbau GmbH, ruling that a refund cannot be denied solely on the assumption of foreign business activity without evidence of taxable transactions. The decision also clarified the distinction between a permanent establishment for corporate income tax and a fixed establishment for VAT in Latvia.

The UK’s HMRC announced several VAT developments in July 2026, including changes to the Capital Goods Scheme, digitisation of option to tax, a consultation on development land for social housing, and the adoption of Peppol for e-invoicing. From 29 July 2026, the CGS threshold for land, buildings and civil engineering works rises to £600,000 and computers are removed from the scheme, while a new online portal for option to tax will launch before year end.

UAE: The Ministry of Finance has extended the deadline for appointing an Accredited Service Provider to 30 October 2026, while the e-invoicing go-live date remains 1 January 2027. Businesses with revenue of AED 50 million or more must now plan for ASP selection and onboarding before the new deadline.

Luxembourg has introduced an 8% reduced VAT rate for the construction of affordable rental housing, down from the standard 17%. The relief applies to qualifying developments that meet conditions on property size, sale price, rental levels and tenant income. The measure is part of a broader housing package announced for 2026.

Switzerland: The Swiss Federal Tax Administration has opened a consultation on draft VAT guidance for e-sports, covering the taxability of virtual sporting events, entry fees, prize money and online access services. The guidance clarifies that electronic sporting events held in virtual environments are not exempt from VAT, and that entry and registration fees are taxable supplies. Online access services for participants and viewers are treated as electronic services subject to place-of-supply rules.

In Nepal, the Inland Revenue Department issued a public notice on 15 July outlining VAT obligations for rideshare service providers. The notice sets a 5% VAT rate on rideshare transportation services, requires operators to issue tax invoices, and applies a 13% VAT rate to platform commissions.

EU: The ViDA package, now EU law, introduces mandatory e-invoicing, platform VAT collection and a single VAT registration system effective from 14 April 2025. Key deadlines include 1 July 2030 for mandatory B2B e-invoicing, 1 January 2030 for platform VAT collection, and 1 July 2028 for OSS extension.

France's e-invoicing mandate will take effect on 1 September 2026, requiring all registered companies to issue and receive e-invoices and large and mid-sized firms to report electronically. The final technical guidelines from AFNOR and the AIFE's external specifications have been released, while the pilot phase shows low participation rates.