The European Court of Justice issued three rulings on 12 March 2026 that clarified VAT deduction rights across the EU. The decisions confirmed that Spain can maintain its entertainment expense restrictions under Article 176, that late invoices do not preclude deductions if claimed within the limitation period, and that technical failures in electronic refund transmission cannot cancel refund claims. These rulings reinforce that VAT rights cannot be undermined by excessive formalism or administrative shortcomings.
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VatCalc · about 17 hours ago
The article reviews progress on the EU's ViDA VAT reform pillars, noting technical discussions from the 42nd VAT Expert Group and Future of VAT Group meetings. It highlights key dates such as the 13 February 2026 approval of EN16931, the 1 January 2027 effective date for Phase 1 Single VAT Registration changes, and the €10,000 threshold debate. While the Digital Reporting Requirements pillar is slated for July 2030 and the Platform Economy pillar for July 2028–January 2030, implementation details remain unsettled.
EY Tax News · 6 days ago
The European Commission released the minutes from its 51st Group on the Future of VAT meeting, held on 3 March 2024, which discussed the ViDA package’s e‑invoicing, digital reporting, platform economy VAT and single VAT registration provisions. Key dates include the start of OSS guidelines on single VAT registration on 1 January 2027 and several upcoming GFV/VEG meetings in mid‑2026 that will shape the final Explanatory Notes for 2027.
The Invoicing Hub · 7 days ago
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VatCalc · 8 days ago
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Vijesti · 17 days ago
The EU has proposed a law allowing governments to temporarily reduce VAT rates to counteract price rises, particularly in fuel, and protect citizens’ standard of living. The proposal is aimed at mitigating inflationary pressures in Montenegro and has broad political support. It follows examples such as Spain’s reduction of fuel VAT from 21% to 10%.
VATCalc · 17 days ago
The EU Parliament has reopened debate on the optional reverse charge mechanism, which is set to expire on 31 December 2026. While the tool has proven effective in curbing missing trader intra‑community fraud in high‑risk sectors, concerns remain about VAT distortions and the need for complementary digital reporting controls. The review signals that reverse charge will stay part of the anti‑fraud toolkit but will be increasingly paired with real‑time transaction monitoring under the ViDA framework.
On 12 March 2026, the ECJ confirmed that Spain’s restrictions on VAT deductions for entertainment and hospitality expenses are compatible with the EU VAT Directive under Article 176, provided they do not materially expand earlier exclusions.
The ECJ held that VAT deductions cannot be denied if the taxpayer receives invoices later, acts in good faith, and claims the deduction within the applicable limitation period, even if the invoices were received years after the transaction.
The ECJ ruled that technical transmission errors cannot render a refund claim non-existent; authorities must act diligently, inform the applicant, and allow corrections.
This summary was published on VATfaqs.com on 15 March 2026. It relates to VAT developments in European Union. The original source is VatCalc.
