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.

The General Court ruled that Poland’s requirement of invoice possession for VAT deduction is incompatible with EU law. Polish taxpayers can now deduct VAT in the month of liability if the invoice was issued before the tax return submission, rather than waiting for the next accounting period. The decision is expected to accelerate VAT recovery and improve cash flow, especially under the mandatory KSeF e‑invoicing system.

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.