Global VAT & Indirect Tax News

The European Court of Justice ruled that Spain cannot automatically deny cleaning cooperatives a VAT exemption for services supplied to educational and healthcare institutions. The decision confirms that such co‑ops are entitled to the exemption, preventing blanket denial by Spanish authorities. The ruling was issued on 22 January 2026.

The Danish National Tax Court confirmed that extraordinary VAT reassessment is permissible when gross negligence is proven. In a case involving a Danish airline, the court upheld the tax authorities’ findings that the company used incorrect input VAT deduction percentages, failed mandatory year‑end adjustments, and understated its liability. The decision clarifies that repeated errors and prohibited energy‑tax deductions justify extraordinary reassessment.