Delaying VAT compliance while upgrading to SAP S/4HANA exposes companies to rework, higher costs, and regulatory penalties. Early integration of VAT and e‑invoicing solutions can prevent errors, reduce audit risk, and accelerate time‑to‑value. The article warns that legacy SAP ERP systems will reach end‑of‑support in 2027, urging firms to embed compliance from day one.

The article reviews recent EU Court of Justice rulings that clarify the VAT treatment of transfer‑pricing adjustments in intragroup transactions. It explains that payments calculated under OECD methods may be treated as VAT‑subjected remuneration for services, while unilateral profit allocations are generally outside VAT scope. The piece also highlights the pending Stellantis Portugal opinion and the need for businesses to document services and support evidence to secure VAT recoverability.

The article discusses the EU’s longstanding VAT exemption for financial services, noting that the exemption was introduced in 1977 and remains in place across EU member states, Iceland, and the UK. It reviews the European Parliament’s February 2026 draft report, which calls for modernising the tax framework, highlights the 91 sector‑specific taxes that have emerged, and explores options such as abolishing the exemption for B2B services or differentiating between B2B and B2C. The piece underscores the hidden costs, market distortions, and competitiveness concerns that the current exemption creates.

The post highlights that the German BMF letter dated 15 Oct 2025 requires e‑invoices to be fully and correctly validated for VAT recognition. It points out common validator shortcomings—such as incomplete EN 16931 checks, superficial VAT checks, and lack of audit‑proof documentation—and warns that many validators only verify the existence of data fields, allowing invoices with missing content to be accepted.

The article explains that under current GST scrutiny, the eligibility of Input Tax Credit (ITC) hinges on a consistent documentation trail rather than just invoices. Chartered accountant Nitin Kaushik outlines the types of records—purchase orders, GST invoices with e‑way bills, GRNs, bank statements, and GSTR filings—that authorities examine. He stresses that due diligence and alignment of all records can protect bona fide buyers from penalties.

The Court of Tax Appeals (Danıştay) issued decision 2025/19, 2025/21 on 12 Feb 2026 clarifying that real‑estate sales by corporate taxpayers held for at least two full years in their books are exempt from VAT, even when sold at auction. The ruling resolves a dispute between Konya and Istanbul regional courts and extends the exemption to auction sales.

The interview with Fabian Barth, VAT Manager at Alvarez & Marsal, discusses the challenges of obtaining binding rulings in the UK, recent Supreme Court VAT cases in 2025, and his view that legislative changes should allow public law arguments in tribunals. He notes that the Hotel La Tour and Prudential cases downplayed CJEU precedent, and that European case law remains binding but is not always applied.

Crowe Poland outlines draft amendments to Poland's VAT regime scheduled to take effect July 2026. Key changes include a VAT warehouse system, removal of duplicate inventory reporting, elimination of reporting for tax‑exempt purchases, and repeal of the 14‑day VAT payment rule for intra‑Community transport acquisitions. The amendments aim to simplify compliance and reduce VAT evasion risk.

The article discusses how AI is transforming tax compliance, moving from insight to execution in regulated workflows. It highlights the scale of U.S. sales and use tax obligations across 19,000 jurisdictions and the potential for AI to cut routine reporting work by up to 65%. The piece emphasizes that tax professionals will retain final accountability while focusing on advisory roles.

Fitch Ratings warns that Thailand’s medium‑term fiscal framework relies on phased VAT increases that are politically difficult to implement, potentially delaying deficit reduction. The plan targets a 2.1% GDP deficit by FY2030, with VAT rising to 8.5% in FY2028 and 10% in FY2030. Political bargaining within the coalition government could jeopardise these fiscal objectives.

VATCalc explains how France’s 2026 reforms are tightening access to Article 143 import VAT relief, requiring non‑EU importers to hold a French VAT registration or an accredited fiscal representative. The EU exemption remains unchanged, but enforcement across the EU is becoming stricter, with the European Court of Auditors pointing out weaknesses in Procedure 42. Businesses must adapt supply chains or adopt technology to meet the new compliance thresholds.

The article argues that Australia should increase its GST rate and broaden the tax base to reduce reliance on income tax, following the OECD’s latest health check recommendation.

The article examines Ghana’s new Value Added Tax Act 2025 (Act 1151) and its implications for capital market services, arguing that the tax may deter investment rather than encourage it. It discusses how the law could affect investor confidence and offers recommendations for regulators and stakeholders to balance tax policy with market development.

The article argues that fully autonomous AI agents will not replace tax professionals in indirect tax due to reliability constraints and the need for structured workflows. It emphasizes that progress comes from workflow design rather than model capability, and that AI agents should be used as supervised assistants to coordinate multi‑step processes. The future will see narrow, supervised agents complementing deterministic tax engines rather than replacing them.

The Internet and Mobile Association of India (IAMAI) has urged the Indian government to reassess the 5% GST applied to ride‑hailing services, arguing it harms driver income and consumer affordability. IAMAI calls for exemptions for SaaS‑based mobility services and highlights confusion from contradictory state rulings. The association seeks dialogue with the GST Council and Finance Ministry to create a more sustainable framework for the sector.

India’s GST law imposes a 5% tax on ride‑hailing services, but the SaaS model used by aggregators creates ambiguity under Section 9(5) of the CGST Act. IAMAI has urged a review of the tax’s applicability, while Karnataka has exempted subscription‑based platforms such as Namma Yatri. The dispute raises uncertainty for aggregators, potentially leading to unexpected liabilities and affecting driver earnings and consumer affordability.

South Africa’s 2026 Budget will focus on whether VAT can keep pace with a digitised economy rather than on rate hikes. A proposed two‑percentage‑point increase was tabled and rejected in 2025, and the Finance Minister confirmed that VAT rate increases for 2025/26 and 2026/27 have been dropped. The Treasury is examining how digital services supplied by foreign providers are taxed and whether the current framework captures modern consumption.

Canada’s Parliament fast‑tracked legislation to boost the GST credit over six years at a cost of $12.4 billion, targeting low‑ and moderate‑income households. The credit will rise 50 % in 2024 and then increase by 25 % each year from July 2025, with a family of four eligible for up to $1,890 in 2026. The editorial critiques the lack of funding plans and the long‑term impact on the deficit.

EY highlights forthcoming changes to Belgian VAT rates, with particular emphasis on the food, entertainment and hospitality sectors. The commentary outlines the sectors that will be most affected but does not provide specific rate adjustments or implementation dates.

The Court of Justice of the European Union (CJEU) ruled that Spain cannot impose a stricter “directly and exclusively” requirement on VAT exemptions for services supplied by independent groups of persons. The decision clarifies that services must be directly necessary for the exempt activity, but exclusivity is not required, allowing general services such as cleaning to qualify. The ruling also states that competition distortion must be assessed on a concrete basis, not presumed.