VAT news & updates
across 150+ countries.

In the EU, the distinction between a branch and a subsidiary determines whether intercompany services are subject to VAT. The FCE Bank decision of 2006 establishes that services supplied by a head office to its branch are outside the scope of VAT, while the Skandia and Danske Bank rulings show that VAT group membership can change this outcome.

Europe: SAP's Plants Abroad and RITA solutions let a single legal entity manage multiple VAT registrations across member states, simplifying reporting. The tools support tax code configuration, reporting by jurisdiction, and integration with ERP, but do not resolve tax determination or localisation requirements.

Germany: The Bundeszentralamt für Steuern has set a deadline of 18 December 2023 for Dutch taxpayers to submit electronic applications for the 2022 input tax refund period. Taxpayers may file a single application for the whole period or quarterly applications, but must withdraw any previously submitted applications.

India's Gujarat High Court dismissed the State's plea and upheld the VAT tribunal's decision that seeds used for sowing are exempt from VAT under the notification dated 29 April 2006. The court quashed revisional proceedings that had revived a tax demand of ₹1.72 crore against Western Agri Seeds Ltd.

In the UK, the Upper Tribunal ruled that Invisalign clear aligners are not dental prostheses for VAT exemption purposes. The decision means that these supplies are standard-rated and businesses must review their VAT position. HMRC may now review the VAT treatment of aligners across the sector.

Germany has made receiving electronic invoices in accordance with the EN 16931 standard mandatory since 1 January 2025, and will require sending structured e-invoices from 1 January 2027. Eurofactura e.V. is conducting a nationwide survey until 30 September 2026 to assess the implementation status and practical challenges of e-invoicing in German organisations.

Germany requires domestic B2B businesses to issue structured electronic invoices, with phased implementation from 1 January 2025 to 1 January 2028. The mandate uses the European standard EN 16931 and the Peppol Network, and imposes strict technical guidelines from the Federal Ministry of Finance.

France: The Supreme Administrative Court ruled that audiobooks should be taxed at the reduced rate for books, not the standard rate for audio devices. Tax authorities have opened a public consultation on revised guidance, with comments due 30 September 2026.

France has finalised e-invoicing rules, setting mandatory e-invoicing from 1 September 2026 and e-reporting from 1 September 2027. The decree updates platform architecture, format standards and audit procedures. Businesses must prepare by selecting accredited platforms and ensuring compliance with new data transmission requirements.

EU Amazon sellers must register for VAT in each country where they store stock, as Amazon's Pan-EU FBA triggers local VAT obligations. The article explains how Amazon validates registrations against VIES from 1 January 2026 and outlines the compliance costs of local registration versus using EFN. It also details new requirements such as Italy's financial guarantee and Poland's automatic deregistration after inactivity.

Luxembourg will broaden mandatory e-invoicing beyond public procurement, introducing a structured B2B mandate. The draft law sets phased obligations from 1 January 2028 for large firms, 1 July 2028 for medium-sized, and 1 January 2029 for all other businesses. Cross-border B2B e-invoicing will apply from 1 July 2030.

France: From September 2026, the e-invoicing mandate will prevent the reuse of invoice numbers after submission, requiring cancellation and new issuance for errors. Businesses must therefore validate data within their ERP before sending to avoid rejected invoices and costly rework.