Global VAT & Indirect Tax News

A UK court upheld HMRC's assessment and imposed a penalty of over £1 million on a private healthcare company that filed a VAT appeal late. The ruling confirms that companies must meet strict conditions to challenge VAT assessments and that late appeals can trigger significant penalties.

The Philippine Court of Tax Appeals (CTA) issued a decision on Jan. 7 clarifying that a VAT deficiency assessment is void if the preliminary assessment notice (PAN) and formal letter of demand (FLD) lack the required annexes detailing the factual basis of the findings. The ruling applies to a domestic corporation’s assessment covering July 1 2013‑June 30 2014, underscoring the importance of proper documentation in BIR assessments.

A UK court upheld HMRC's decision to reject a private healthcare company's late VAT appeal, confirming that the company must meet strict conditions to challenge the assessments and the £1.3 million penalty. The ruling reinforces HMRC's authority to enforce timely appeals and the penalties for late submissions.

The article discusses the CJEU Advocate General’s opinion in the Stellantis Portugal case, clarifying that transfer pricing adjustments agreed between parties may affect VAT taxable amounts, while unilateral tax authority adjustments do not. It distinguishes between separate services and contractual price adjustments, noting that a change in taxable amount does not constitute a separate supply of services. The final judgment is pending, expected before summer 2026, giving businesses time to assess implications.