Author: Europe News Desk

Germany is preparing to impose a 10% levy on revenues earned by major online platforms such as Alphabet’s Google and Meta’s Facebook, marking the most assertive effort yet by the new Merz government to curb foreign tech dominance and reclaim what it calls “rightful contributions to society.” In an interview with Stern, newly appointed Culture Minister Wolfram Weimer revealed that his ministry is finalizing legislation to tax online giants operating in Germany. The levy would apply to revenue earned from digital services within the country’s borders, not just profits a detail that positions it as a direct challenge to the…

Italian financial authorities have unveiled a wide-reaching tax evasion scheme allegedly orchestrated by a network of Chinese-run businesses, raising alarms over threats to both Italian public revenues and broader European Union financial integrity. According to a statement by the Guardia di Finanza in Pordenone, a total of 15 Chinese nationals are under investigation for orchestrating a €10.5 million ($11.95 million) VAT fraud operation involving 13 companies across Italy’s Friuli region. The alleged fraud resulted in €5.5 million ($6.26 million) in unpaid VAT alone. Fictitious Invoices, Shell Companies, and Fraudulent Filings The accused companies allegedly manipulated tax returns using fictitious invoices…

Austria’s tax and legal landscape saw a series of impactful developments in May 2025, ranging from court rulings on corporate governance to evolving packaging laws and EU-driven cybersecurity obligations. Below is a roundup of the key highlights affecting businesses and professionals. Supervisory Board Members: Liability for Inaction Clarified The Austrian Supreme Court issued a significant ruling on the duties of supervisory board members, distinguishing their responsibilities from those of management boards. The court emphasized that supervisory board members must monitor management and assist in major decisions. Notably, they can be personally liable for any damages resulting from failure to act…

A recent ruling by the Swedish Tax Court has clarified the VAT treatment of business asset transfers, particularly in cases where the recipient entity engages solely in tax-exempt activities. In Advance Notice No. 76-24/I, the court evaluated whether a planned transfer of brokerage operations from a parent company to its wholly owned subsidiary would qualify as a supply of goods or services under Chapter 5, Section 38 of the Swedish Tax Code often referred to in EU contexts as the VAT Act. Case Overview The taxpayer in question is the sole owner of a subsidiary. Currently, the parent company conducts…

As France embarks on its 2025 fiscal journey, significant tax reforms have been introduced, impacting domestic and international taxpayers. These changes aim to enhance fiscal equity, address budgetary challenges, and align with global taxation trends. Adjusted Income Tax Brackets Reflecting Inflation In response to inflationary pressures, France has revised its income tax brackets for the 2025 fiscal year (applicable to 2024 income). These modifications aim to preserve purchasing power by aligning tax thresholds with inflation rates. Introduction of the 20% Minimum Tax for High Earners (CDHR) A pivotal reform is the Contribution Différentielle sur les Hauts Revenus (CDHR), ensuring that…

Russia is moving to deepen its digital transformation of tax administration, with the Federal Tax Service (FNS) introducing enhanced tax monitoring protocols for 2026. To expand real-time compliance oversight, companies planning to enter the tax monitoring regime must submit a strategic roadmap and timeline (“plan-graph”) by July 1, 2025. The tax monitoring system, a cornerstone of Russia’s advanced tax administration reform, offers select corporate taxpayers an alternative to traditional tax audits. Instead, participating companies engage in real-time information sharing and continuous compliance through a digital interface with the FNS. Who Must Submit What? These documents are being developed in collaboration…

In a landmark step toward digital transformation across the European Union, the EU Council has formally adopted the VAT in the Digital Age (ViDA) directive. The sweeping reform mandates electronic invoicing and real-time transaction reporting for all cross-border business-to-business (B2B) transactions within the EU by July 1, 2030. Now that we are moving into the national implementation phases, the directive will significantly alter how European companies manage VAT compliance. Like other EU member states, Sweden is preparing to enshrine the regulation into domestic law, marking a pivotal shift in its fiscal infrastructure. Under the new rules, Swedish companies conducting B2B…

The UK government has issued updated guidance on the 17% Stamp Duty Land Tax (SDLT) rate applicable to high-value residential properties acquired by corporate bodies, with important implications for developers, property traders, and institutional investors. Until 31 October 2024, specific corporate entities defined as ‘non-natural persons’ face a flat 17% SDLT rate when purchasing residential properties worth more than £500,000. These include companies, partnerships with corporate partners, and collective investment schemes. However, there are notable carve-outs that can mitigate the tax burden. Entities acting as trustees of settlements are not subject to the 17% rate. However, they may still be…

In a robust display of fiscal performance, tax revenues from Moscow-based taxpayers surged to ₽6.6 trillion in 2024, marking a 25% increase over the previous year and accounting for more than one-fifth of all tax inflows into Russia’s consolidated federal budget. These figures were presented by Marina Tretyakova, Head of the Moscow Federal Tax Service (FNS), during her address to the Moscow City Duma. The capital continues to serve as Russia’s fiscal engine, with its contribution to federal tax revenue alone reaching ₽2.8 trillion, a nearly 22% increase year-over-year. This performance underscores the Moscow region’s dynamic economic activity and tax…

The UK’s HM Revenue & Customs (HMRC) has identified a growing trend among state-regulated care providers attempting to exploit VAT legislation through complex VAT grouping arrangements. These schemes aim to reclassify supplies of welfare services from VAT-exempt to VAT-taxable, enabling the recovery of VAT on costs that would otherwise be irrecoverable. How the Scheme Works State-regulated care providers or charities, which typically supply welfare services exempt from VAT, are teaming with unregulated care providers via VAT grouping. Contracts originally held between regulated providers and local authorities (LAs) or NHS Integrated Care Boards (ICBs) are transferred to an unregulated provider. As…