Global VAT & Indirect Tax News

The Philippine Court of Tax Appeals issued a decision on Feb. 10, 2026 (CTA Case No. 10561) clarifying the validity of assessments for alleged tax deficiencies. The case involved a domestic corporation claiming entitlement to a 5 % preferential gross income tax rate and a 12 % VAT exemption, arguing that the Commissioner of Revenue had incorrectly applied a 30 % threshold for income from Philippine sources outside the Subic Special Economic and Freeport Zone. The court examined whether the sales in question were within the zone and the implications for the tax assessments.

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.

Turkiye has introduced new certification requirements for nondeductible VAT on certain import transactions effective 31 January 2026. Importers with semi‑annual import values above TRY 2.6 million must submit a Special‑Purpose Sworn‑in Certified Public Accountant Report, while those below must file a notification. The rules also allow a full tax‑certification agreement to waive the separate report if it confirms proper treatment.