The UK Government brief confirms that the VAT exemption for deputising services extends to all temporary medical staff, including locum doctors supplied by employment businesses, following a 2025 First Tier Tribunal ruling. Businesses that have charged standard‑rate VAT on such supplies within the last four years can claim a refund via an error‑correction notification. The brief also outlines the steps for claiming refunds and the impact on recovered input tax.

The China State Council adopted a new VAT Implementing Regulation on 19 December 2025, which came into force on 1 January 2026. The regulation, comprising 54 articles across six chapters, provides detailed enforcement procedures and clarifications on taxable goods, services, intangible assets, taxable persons, VAT rates, zero‑rated and exempt supplies, tax calculation, and cross‑border collection responsibilities, complementing the updated VAT law enacted in December 2024.

The UK First‑Tier Tax Tribunal ruled on 16 December 2025 that photography costs used for product catalogues and an online store by an online retailer with integrated financial services are fully recoverable input VAT, as they are used for taxable retail supplies. The decision clarifies that such costs are not partially recoverable due to mixed use with exempt financial services.

Mexico’s 2026 Tax Reform introduces significant VAT changes, including non-creditable VAT on insurance claims settled in kind and new digital reporting obligations for platforms. Digital platforms must provide online access to transactional data, upload detailed supplier information daily, and retain records for five years. The reform also removes the ability of Collective Financing Institutions to substitute legal entities for VAT withholding on interest paid to individuals.

The EU General Court clarified that simplified triangulation can be used in four-party supply chains if the third party has disposal power, even when goods are delivered to a fourth party. Dutch policy confirms this but adds an establishment requirement for party C, which may be overridden by the EU VAT Directive. The ruling also allows Member States to refuse the scheme in cases of VAT fraud.

On 17 December 2025 the UK First‑Tier Tax Tribunal ruled that companies trading in telephone calling cards are liable for VAT and penalties, rejecting their claim to recover input VAT on purchases from a Hong Kong supplier. The tribunal held that the companies acted as principals, not agents, and failed to hold valid VAT invoices.

Cyprus Tax Agency extended the filing and payment deadline for certain VAT obligations to Jan. 20, 2026. The extension covers VAT returns for the period ended Nov. 30, 2025, VIES summary tables for December 2025, and flat‑rate declarations for the special urban taxi regime. Late filing may incur a 10% additional VAT and a €100 penalty.

The BFH ruling confirms that input tax can be deducted for the renovation of a historic castle even when financed by public grants and private donations, provided there is an entrepreneurial intent to generate taxable rental income. The decision clarifies that financing does not affect deduction, requires a clear allocation between private and taxable use, and mandates that the tax office determine the exact deductible share.

Italy’s 2026 Budget Law introduces several indirect tax measures effective 1 January 2026, including a new €2 levy on small shipments into the EU, a change to the VAT base for barter transactions, and automatic VAT settlement for non‑filing taxpayers. The law also postpones the plastic and sugar taxes to 1 January 2027 and the new consolidated VAT code will take effect on 1 January 2027.

France will terminate the one‑off fiscal representation route for Customs Procedure 42 on 1 January 2026, requiring non‑EU sellers to register for French VAT in their own name and file ongoing returns. The change removes the simplified “France‑as‑gateway” model and forces operators to adopt a formal French VAT footprint or reroute through other EU members.