Global VAT & Indirect Tax News

The CJEU ruled that a lawyer providing free legal assistance who receives a fee from the opposing party upon a successful outcome is considered a VAT taxable person. The court held that the lawyer's fee constitutes a supply of services for consideration, subject to VAT under the EU VAT Directive. This decision clarifies that such fees are taxable even when paid by a third party.

The EU has updated its eInvoicing standard EN 16931, adding B2B extensions, new technical specifications, and a semantic data model. The ViDA initiative now requires near real‑time VAT reporting for intra‑EU transactions, with a new Digital Reporting Requirements (DRR) message that is a VAT report, not an invoice. Businesses aligning early will avoid compliance issues and benefit from streamlined invoicing and reporting.

The Madras High Court has ruled that input tax credit (ITC) claimed by dealers is provisional until they provide proof of the underlying sale transaction. The court directed the dealer to submit the required documentation, emphasizing that ITC cannot be confirmed without supporting evidence. This decision underscores the importance of maintaining proper records for GST compliance.

Maastricht Centre for Taxation has released two free, open‑access books – "VAT in a Day" and "Customs in a Day" – that provide concise introductions to the EU VAT Directive and the Union Customs Code. The publications aim to equip readers with a solid grasp of EU indirect tax law within a single day and are supported by leading Dutch universities and tax firms.

This article explains how Thailand’s VAT rules treat trade and cash discounts, highlighting that only trade discounts granted at the time of sale and without conditions can be excluded from the VAT base. It cites the Revenue Department ruling No. Kor.Kor.0702/6077 (14 Oct 2025) that requires VAT to be calculated on the full selling price for conditional discounts, and notes that no VAT credit note can be issued when a deposit is refunded.

Morrisons has lost a VAT court case, resulting in a £17 million tax bill. The ruling confirms the supermarket’s liability for unpaid VAT and underscores the importance of strict compliance for retailers. The decision may serve as a precedent for future VAT disputes in the UK.

Italy has reduced the VAT rate on works of art, collectibles and antiques to 5% from 1 July 2025, replacing the former 10% rate for imports and sales by authors. The change applies to domestic sales, imports and intra‑Community acquisitions, but is incompatible with the margin scheme for resellers. Operators must adjust invoicing, ledger practices and potentially switch between margin methods to comply with the new regime.

Slovenia has increased its Intrastat reporting thresholds for arrivals and dispatches of goods with other EU member states, effective 1 January 2026. The arrivals threshold rises from €240,000 to €300,000 per annum (statistical €4 million), while dispatches rise from €270,000 to €280,000 per annum (statistical €9 million). These changes affect larger shippers and are part of Slovenia’s annual reporting obligations for intra‑EU trade.

Serbia’s 2026 VAT amendments overhaul reporting, invoicing and timing rules, with most provisions taking effect on 1 April 2026. The changes tighten internal invoicing requirements, postpone the pre‑filled VAT return model to 2027, and expand the scope of electronic invoicing (SEF) for internal invoices. Businesses must adjust ERP systems and compliance workflows to meet the new deadlines and documentation mandates.