KPMG’s weekly update highlights two contrasting VAT rulings on hair loss treatments and a key import‑VAT recovery case. The UK Tax Tribunal zero‑rated the Kinsey system for female hair loss as a service of adapting goods for a disabled person, while a surgical hair transplant was standard‑rated as cosmetic. The Yourway Transport decision clarified that a taxpayer can recover import VAT on drugs moved to other Member States when acting as an agent and deemed owner under s47.

Reform UK has proposed cutting the VAT rate on hospitality from 20% to 10% as part of a rescue package for pubs and restaurants. The article argues that the move would undermine VAT neutrality, add administrative complexity, and likely fail to lower consumer prices. It also notes that Germany announced a similar 7% hospitality VAT cut in January 2026.

This Thomson Reuters blog outlines the growing complexities of indirect tax compliance, from global VAT and GST rules to real‑time reporting demands, and explains how AI, cloud platforms and integrated solutions can automate filings, improve accuracy and reduce audit risk.

The article discusses the impact of the Philippines’ 12% VAT on households and the economy, and examines Senate Bill 1152’s proposal to reduce the rate to 10%. It highlights the fiscal implications, including a projected revenue loss of about P330 billion from 2026 to 2030, and the broader effects on consumer spending and government finances.

The article discusses how indirect tax functions are evolving from compliance to strategic partners, driven by AI, data, and new regulatory demands such as the OECD’s Pillar Two and the EU’s VAT in the Digital Age (ViDA). It highlights the impending mandatory e‑invoicing for Irish businesses in 2028 and the operational challenges companies face in preparing for real‑time reporting and data integration.

Experts at a CESS seminar in Hyderabad called for a balanced approach to India’s GST 2.0 rollout, emphasizing the need to simplify compliance while protecting revenue. They highlighted a proposed two‑slab rate structure of 5% and 18%, reforms to address inverted duty structures in textiles and fertilizers, and concerns over misuse of the three‑day registration approval window. The Trust‑First philosophy notes that 95% of taxpayers operate without intrusive scrutiny.

This commentary highlights five significant Canadian GST/HST court decisions from 2025, covering topics from tobacco sales to insurance, medical services, optional term extensions, and Airbnb-listed condo sales. The rulings clarify exemption status, input tax credit eligibility, and the treatment of new supplies, providing guidance for tax planning and compliance in 2026.

The UK Supreme Court’s 2025 decision in HMRC v Hotel La Tour Ltd clarified that input VAT on professional fees linked to a share sale is irrecoverable because the costs are directly tied to an exempt supply. The ruling confirms that the direct and immediate link test applies to share sales and that being part of a VAT group does not allow recovery of such fees. The judgment underscores the need for careful documentation to distinguish between exempt and out‑of‑scope transactions.

Experts and tax officials at an ICSSR‑sponsored seminar in Hyderabad called for a balanced approach to India’s upcoming GST 2.0 rollout, highlighting the need to simplify rates while protecting revenue. They warned against the misuse of the three‑day registration approval window and the inverted duty structure in sectors such as textiles and fertilizers.

The article explains how the upcoming ViDA framework will eliminate tolerance for inconsistencies between VAT determination, invoicing and reporting, pushing control to the transaction level. It highlights that intra‑EU transactions will require near real‑time digital reporting, and notes key future dates for reverse‑charge harmonisation and the withdrawal of the European Sales Listing. The piece also discusses the implications for triangulation and supply‑chain transactions and promotes a single‑engine solution for compliance.

Ghana's recent VAT reforms aim to correct structural weaknesses rather than provide immediate price cuts. Key changes include abolishing the COVID‑19 Health Recovery Levy, allowing NHIL and GETFund levies to be credited as input VAT, raising the goods‑based registration threshold, and phasing out flat‑rate schemes. The reforms also emphasize electronic invoicing to improve compliance and revenue collection.

The article discusses Canada’s new Canada Groceries and Essentials Benefit, a top‑up to the GST credit announced by Prime Minister Mark Carney on January 26, 2026. The benefit totals $11.7 billion over six years, covering 12 million people, and recipients can spend the money on any goods or services. The benefit does not affect grocery GST, which remains exempt except for snacks.

Portugal’s government has drafted a bill to cut VAT on construction for own permanent housing to 6%, but the Portuguese Association of Chartered Accountants (OCC) deems the proposal unworkable due to its reliance on post‑construction third‑party checks. The bill would apply only to properties for own use with a sale value not exceeding €648,000, and would require contractors to issue zero‑VAT invoices with developers self‑assessing. OCC warns that the uncertainty could force builders to absorb the difference between 6% and the standard 23% rate.

The blog outlines emerging trends in intra‑group loan transfer pricing for 2026, highlighting recent court rulings in Luxembourg, Belgium, and the Netherlands that tighten documentation and credit‑rating requirements. It stresses the need for fact‑specific debt‑capacity analyses, robust credit‑rating methodologies, and clear contractual terms to mitigate audit risk. Multinationals should align loan terms with arm‑s‑length principles and document them comprehensively.

Brazil’s new dividend withholding tax (WHT) has been in force for nearly a month, but questions remain about its application. The December 16, 2025 Q&A confirms that dividends paid to foreign governments, sovereign funds and social‑security‑benefit managers are exempt, and that the exemption also covers entities wholly owned by exempt investors. However, in structures where a Brazilian entity is held by a foreign holding company only partially owned by exempt investors, the exemption may not apply, potentially subjecting dividends to full WHT.

The OECD has renewed its call for Australia to broaden and potentially raise the GST to improve fiscal sustainability. It recommends expanding the tax base and considering a rate increase above the current 10%, possibly up to 15% if paired with income‑tax cuts, and estimates a 1.6% boost to output over ten years. The recommendation comes ahead of the May federal budget and follows a mid‑year budget update that confirmed persistent deficits.

The article discusses the completion of GST 2.0 in India, the removal of the GST compensation cess, and the introduction of new excise rates on demerit goods such as cigarettes. It highlights how the excise notification could trigger a tax shock, affecting tobacco growers, small retailers, and the broader economy. Monthly GST collections in late 2025 remained robust, exceeding Rs 1.7–1.9 lakh crore.

The article discusses recent Supreme Court rulings and a BIR circular that simplify VAT zero‑rating and refund procedures for renewable energy developers in the Philippines. It explains that developers no longer need a DOE COE or an ERC COC, and that local suppliers no longer must file zero‑rating applications. The piece also outlines the conditions under which input VAT can be refunded and advises developers to maintain proper registration certificates.

A non‑binding opinion from an EU Court of Justice adviser clarifies that Stellantis Portugal SA’s practice of adjusting sales prices for dealerships does not constitute a service and therefore is not subject to VAT. The opinion adds to a growing body of guidance on VAT treatment of transfer‑pricing adjustments and highlights the European Commission’s focus on closing the €128 billion VAT gap reported in 2023.

The article discusses how governments across the GCC, Europe and Asia are moving toward real‑time clearance and continuous transaction control (CTC) models for e‑invoicing, with the UAE accelerating adoption of PEPPOL and FTA‑aligned reporting. It highlights that by 2026 CFOs will need new roles such as Tax Data Engineers to manage structured tax data pipelines and real‑time compliance. The piece outlines the operational shift from manual reconciliation to data‑oriented finance functions and the importance of interoperable e‑invoicing systems.