The Swedish Tax Court issued Advance Notice No. 54‑25/I on 17 Dec 2025, clarifying that the input VAT deduction limitation for permanent residences does not extend to parking garages that are clearly separated from the residence. In the case, a taxpayer owning a residential building, a commercial building and a parking garage sought guidance, and the court ruled that the garage’s design and use meant it was not part of a permanent residence, so its costs are not subject to the limitation.

The European Court of Justice issued a preliminary ruling on Feb. 9, 2026, concerning Bulgarian VAT liability for third parties. In Case C‑121/24, a road‑transport company was assessed for unpaid VAT after the supplier was removed from the commercial register. The ruling clarifies that the taxpayer can be liable for the supplier’s unpaid VAT when the supplier fails to pay the chargeable VAT.

The European Parliament’s ECON committee has released a draft report urging the removal of the long‑standing VAT exemption for financial and insurance services under Directive 2006/112/EC. The report highlights the distortions caused by the exemption, the proliferation of over 90 sector‑specific taxes across the EU, and calls for a coordinated framework that taxes identifiable fees, clarifies emerging services, and harmonises cost‑sharing mechanisms.

The Mongolian Government has submitted a comprehensive VAT reform package to Parliament, introducing major changes such as full deductibility of reverse‑charged VAT on foreign services, immediate deduction of capital expenditure VAT, a simplified regime for businesses below MNT 400 million, and a one‑to‑two‑month deferral of monthly VAT payments. The standard VAT rate remains 10%.

The Danish Business Authority has unveiled SAF‑T 2.0, a new standard for exchanging accounting data at the transaction level. From 1 January 2027 all registered digital accounting system providers must support SAF‑T 2.0, while companies using non‑registered systems must continue to generate SAF‑T 1.0 files and comply with the Bookkeeping Act. The update enhances data sharing with partners and authorities such as the Danish Tax Agency and supports future automation in reporting to public sector bodies.

The Finance (No. 2) Bill 2024‑26 has been amended in Committee and will return to the House of Commons for further stages. Scotland will introduce a new Air Departure Tax on 1 April 2027, replacing APD, with a consultation closing 26 March 2026. Deloitte’s Advance Tax Certainty service will become operational from July 2026, while the OECD Global Forum on VAT met in January 2026 to discuss digital economy and near real‑time data collection.

A draft European Parliament report dated Feb. 4 calls for changes to the VAT exemption for the EU’s financial sector, arguing it is misaligned with today’s economic and technological realities. The report proposes coordinated EU‑wide taxation where feasible and minimum standards for temporary windfall taxation to align exceptional profits with long‑term public investment priorities. It was authored by German MEP Matthias Ecke.

The French Administrative Court of Appeal of Paris issued Decision No. 25PA00785 on Feb. 4, 2026, clarifying that the ordinary law procedure for VAT refunds for taxable persons outside the EU does not apply when the taxpayer did not carry out transactions during the period. The UK company’s claim for an import VAT credit was partially denied by the Court of Montreuil and upheld by the Court of Appeal.

Belgium’s federal parliament has approved a broad VAT reform bill (No. 56/1205) that introduces significant changes to invoicing, deduction adjustments, refund procedures and compliance enforcement. Key measures include extended VAT adjustment periods, a substitute return mechanism for late filings, clarified VAT ID reporting for non‑Belgian customers, mandatory e‑invoicing for government contracts and a three‑month rule for VAT refunds.

Ireland’s Revenue has confirmed a phased launch of mandatory B2B e‑invoicing and e‑reporting, starting with large corporations in November 2028 and expanding to all taxpayers by November 2029. The EU‑wide ViDA e‑invoicing system for intra‑community transactions will come into force in July 2030. The initiative follows a public consultation that ran from 13 October 2023 to 31 January 2024.

The Czech Customs Administration clarified on Feb. 6 that individuals from non‑EU countries can claim VAT refunds on goods purchased in the Czech Republic if they prove residence abroad and are not conducting business locally. Refunds are excluded for tobacco, alcohol, food, fuel and other specified goods, and sellers must provide two copies of the sales document with required notations.

On 27 January 2026 the Swedish Tax Court issued Advance Notice No. 62‑25/I, clarifying the VAT treatment of mobile housing modules leased to municipalities and private owners for student housing and nursing homes. The court held that leasing these modules does not constitute leasing real estate for VAT purposes, affecting input‑VAT deduction rights. The modules are assembled on site, mounted on foundations, equipped with utility ducts, and subject to time‑limited building permits.

The VAT Consultant highlights the growing need for expert tax advisory in the UAE as stricter VAT registration rules and a new corporate tax regime take effect. New penalty regimes effective 14 April 2026 and a surge in Federal Tax Authority audit activity underscore the importance of proactive compliance. The firm offers assessment, strategic planning, and ongoing monitoring to help businesses navigate these changes.

China's Ministry of Finance has announced that goods returned from e‑commerce exports will be exempt from import duties, import VAT and consumption tax from 1 January to 31 December 2027. The move aims to support the growth of cross‑border e‑commerce. The exemption applies to goods returned via e‑commerce platforms.

Sweden has launched a public inquiry into mandatory e-invoicing and digital VAT reporting, aligning with the EU’s ViDA framework. The inquiry will be completed by 30 November 2027 and will assess extending e-invoicing to domestic transactions. EU ViDA requires cross‑border B2B e‑invoicing with reporting obligations starting 1 July 2030.

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.

Italy has raised the Intrastat acquisitions reporting threshold from €350,000 to €2 million for VAT‑registered businesses, effective 25 February 2026 for transactions in January 2026. The change, announced in Act No. 84415, keeps the INTRA‑2 bis form unchanged and is enabled by the country’s e‑invoicing platform and EU data‑exchange mechanisms.

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.