The Court of Justice ruled that virtual currency used only within an online video game is not exempt under Article 135(1)(e) of the EU VAT Directive and is not a voucher under Article 30 bis. Consequently, such transactions are taxable electronic services, with VAT calculated on the full sale price. The decision clarifies that the exemption applies only to virtual currencies accepted as an alternative to legal tender and used solely as a payment instrument.

A parliamentary question and Treasury response have clarified that paid entries in UK prize draws are not exempt from VAT and will be taxed at the standard 20% rate. The voluntary code of conduct for prize draw operators, aimed at improving consumer protection, will take full effect on 20 May 2026. The sector is valued at £1.3 billion annually.

UAE businesses are discovering that self‑managed VAT filing can lead to significant penalties, lost refunds, and audit complications. The new penalty regime effective 14 April 2026 and the five‑year limitation period for VAT credits introduced on 1 January 2026 have increased the cost of DIY compliance. Professional services now offer measurable savings through accurate filing, proactive deadline management and timely refund claims.

From 23 August 2026, non‑resident providers of digital services to Azerbaijani consumers must register with the tax administration and charge 18% VAT, replacing the previous withholding‑tax regime. The VAT registration threshold is AZN 17,000 per annum, and the current VAT rate of 18% applies to all domestically supplied digital services. Implementation guidance and FAQs are expected before the August deadline.

The Supreme Court’s December 2025 ruling reaffirmed the BLP barrier, stating that VAT incurred on fees for share sales remains non‑deductible because of a direct and immediate link to an exempt supply. The decision effectively ends the argument that share‑sale proceeds can be used to recover VAT on overheads. Businesses must therefore plan VAT recovery strategies early and seek specialist advice before raising capital through share sales.

China has removed the 9% export VAT rebate on PV modules, marking a shift from price‑led subsidies to value‑based competition. The change is expected to raise costs for manufacturers and influence module pricing across markets. The policy reflects industry maturity and a focus on quality, efficiency, and long‑term bankability.

Slovakia is implementing significant amendments to its VAT Act effective 1 April 2026, targeting high‑risk taxpayers. The changes grant the tax authority expanded powers, including extended registration deadlines, mandatory record‑keeping, and a presumption of cessation of activity. From 1 January 2027, a VAT guarantee mechanism will allow the authority to require customers to pay VAT directly to a special account, with guarantees ranging from €5,000 to €500,000.

France's 2026 Finance Law introduces several VAT changes, including extending the 5.5% reduced rate to refrigeration energy and air transport in overseas departments, proroguing the 10% forestry rate until 2028, and tightening e‑invoicing sanctions. It also mandates electronic invoice reception for all VAT‑registered entities from 1 September 2026 and replaces the CGI with the new CIBS code for VAT from the same date.

Turkey’s new 19‑article bill introduces a 0.3% transaction tax on crypto trades and a 20% special consumption tax on diamonds, while explicitly exempting crypto transactions from VAT. The proposal also removes certain tax deductions and adjusts other tax exemptions, marking a significant shift in the country’s fiscal framework.