Global VAT & Indirect Tax News

Ethiopian judges on 21 February 2026 rejected a bid by lawyers to freeze a controversial VAT directive, leaving the directive in effect. The decision centers on whether VAT compliance can be compelled without a threshold, a question that has implications for legal professionals and businesses. The ruling clarifies that the current VAT registration requirements remain unchanged.

The article examines how transfer pricing adjustments can trigger VAT when they are considered payment for goods or services, citing the recent Stellantis Portugal Advocate General opinion. It highlights the need for multinationals to conduct structured reviews, document economic rationale, and maintain evidence to mitigate VAT risks, especially in finance and insurance sectors.