Author: Europe News Desk

France’s aviation industry is feeling the impact of a tripling of the “solidarity tax on airline tickets” (TSBA), with airlines, airports, and business aviation operators reporting decreased traffic, reduced profits, and lost competitiveness in European and global markets. The tax, introduced in March 2025, adds €4.77 per domestic or intra-European flight and can reach up to €120 on long-haul business-class tickets. While initially presented as a fiscal measure to benefit the state, the levy is increasingly viewed as a self-inflicted blow to France’s travel and tourism sector. According to a study by the Directorate General of Civil Aviation (DGAC), airlines…

British Finance Minister Rachel Reeves is reportedly preparing to announce a rise in personal income tax in her November 26 budget, according to The Times, as the government looks to meet fiscal targets and maintain public spending. Reeves has informed the Office for Budget Responsibility (OBR) that a tax increase is among the “major measures” being considered for the upcoming budget. While the Chancellor could still revise her plans, the official submission indicates the proposal is under serious consideration. Proposed measures The Times reports that Reeves is weighing a two pence increase in income tax alongside a two pence reduction…

Britain’s Chancellor of the Exchequer, Rachel Reeves, signaled on Thursday that her government is exploring reforms to business property taxes aimed at helping smaller firms expand, as the country braces for its annual budget on November 26. Reeves emphasized the need to ease sharp increases in property taxes—known as business rates—that can create financial hurdles when small companies grow. “Our economy isn’t broken, but it does feel stuck,” Reeves said alongside a finance ministry report examining business property taxation.“Tax reforms such as tackling cliff-edges in business rates and making reliefs fairer are vital to driving growth.” The proposed measures could…

The Kosovo Tax Administration (TAK) has reported steady revenue growth, collecting a total of €713.3 million in the period from January to August 2025. This represents an increase of €71.2 million compared to the same period in 2024. Officials say the results highlight a stable upward trend in tax revenues, reflecting TAK’s commitment to effective law enforcement, strengthened tax administration, and the growing awareness among taxpayers about meeting their obligations. The revenue increase is particularly important for Kosovo’s fiscal stability, providing more resources for public investment, economic development, and services for citizens. TAK emphasizes that this success is the result…

Poland is pressing forward with plans to introduce a 3% digital services tax (DST) on large multinational tech companies, despite explicit threats of retaliatory tariffs from U.S. President Donald Trump. According to the Polish Digital Ministry, a draft bill is expected by the end of 2025. The measure would apply to digital companies with global revenues exceeding €750 million, ensuring they contribute “fair taxes” on revenues generated from the Polish market. Although framed as non-discriminatory, the proposed DST is widely seen as targeting U.S. tech giants such as Google, Amazon, and Meta. Services in scope include digital advertising, online marketplaces,…

European export shops, the duty-free retail outlets located in airports and border terminals, face stricter operational guidelines as authorities clarify rules for sales to entitled and non-entitled passengers. The updated guidance aims to ensure proper compliance with customs duty suspension laws while streamlining monitoring of these specialized retail spaces. According to the latest instructions, export shop operations now fall into three distinct categories: Customs-suspended goods, such as imported electronics from Japan or premium wines from Australia, may only be stored in export shops that have received formal approval as a customs warehouse. Compliance procedures for these products closely mirror those…

Spain remains one of the few European countries to still collect wealth taxes, offering lessons for policymakers worldwide. Wealth taxes, first introduced in 1978, take a percentage of an individual’s assets each year. Rates start at 1.7% for net wealth of €3 million and rise to 3.5% for fortunes over €10 million. To prevent the rich from leaving, Spain provides exemptions, including for family-owned businesses and primary residences, and caps combined income and wealth taxes at 60% of income. These measures have helped keep billionaires in the country while increasing fairness and social equity. The policy’s impact goes beyond revenue…

Norway’s Tax Administration has audited 150 foreign online companies that initially failed to pay VAT, resulting in back taxes, additional charges, and VAT totaling 4.9 billion NOK. These companies operate in streaming, gaming, dating, and adult content services. The 150 foreign online companies, audited since 2016, were not registered for VAT before the controls. After being forcibly registered, they have now reported 4.1 billion NOK in VAT. Many of these companies now comply with Norwegian tax rules, demonstrating the critical importance of the audits. Odd Woxholt, divisional director at the Norwegian Tax Administration, stressed: “Failing to pay VAT is illegal…

With President Donald Trump’s announcement of a 15% tariff on European-made goods, the recreational boating industry is facing a significant challenge. The U.S. is the largest market for European yachts, and most of the world’s superyachts are built in Europe, which is now set to be impacted by the tariffs. While wealthy buyers of yachts can likely afford the additional 15%, brokers note that it will still affect buying decisions, and industry experts are already looking for ways to avoid this new cost. Key Points: Tariff Implications for Yacht Buyers While many wealthy Americans buying yachts are likely to find…

In a landmark decision, Denmark’s Supreme Court has significantly altered the country’s approach to transfer pricing, marking a major shift in its tax jurisprudence. The judgment, which was based on the OECD’s Transfer Pricing (TP) guidelines, overrules more than 15 years of consistent administrative practice, according to experts consulted by International Tax Review (ITR). Key Points of the Judgment: Analysis: The court’s reliance on OECD guidance is seen as a step toward greater harmonization of transfer pricing practices with international standards. For businesses, this ruling underscores the importance of staying updated with evolving global tax norms and proactively adjusting their…