MHA VAT & Indirect Tax Newsletter | February 2026 |
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Welcome to the February
VAT & Indirect Tax Newsletter!
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Welcome to the latest edition of our monthly VAT & Indirect Tax newsletter, packed with news and insights to keep you updated on the world of VAT and indirect taxes.
Should you have any questions, please do not hesitate to contact us. We hope you find our newsletter interesting and informative; please do feel free to forward to anyone you think would find it useful. |
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| From Paper to App: The Rise of eCarnets
ATA Carnets are entering a new digital era. With eCarnets being rolled out globally from 2026, businesses need to understand how the move from paper to app-based carnets will change international movements, and how to prepare, Andrew Thurston explains more.
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| | Inward Processing Authorisation Holders
We are seeing a sudden and concerning increase in enquiries from businesses holding Inward Processing (IP) authorisations following recent correspondence from HMRC.
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| | MHA's Industry
Predictions for 2026
We are pleased to share MHA’s Predictions 2026 report, outlining the major trends and challenges expected to shape the UK business landscape over the next 12 months. Sue Rathmell and Andrew Thurston join fellow industry experts to share their insights and predictions for the year ahead.
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| | Trump’s Tariff Threats: What Businesses need to Consider
President Donald Trump’s latest statements on potential US trade tariffs have introduced fresh uncertainty for exporters, particularly those with significant exposure to the US market.
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Robin Prince, VAT Partner at MHA, comments on the AG’s opinion in the Stellantis case and the implications for VAT and Transfer Pricing |
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The Opinion of Advocate General Kokott offers a sensible and well-reasoned approach to the application of VAT to transfer pricing adjustments. Notably, she addresses the issue in a much broader context than the specific question referred, deliberately seeking to establish a more general framework for the VAT treatment of transfer pricing adjustments. In doing so, the Opinion appears intended to clarify the uncertainty created by the Court’s recent decision in Arcomet Towercranes.
If the Court follows this approach, it would bring greater certainty to the interaction between VAT and transfer pricing. However, it is unlikely to result in a material financial impact, as the conclusions broadly align with how most businesses already treat these types of payments in practice.
The only thing that does appears certain is that tax authorities in both the EU & UK are going to continue their increased level of enquiries that they undertaking into the fee charged for management support services, from both a TP and VAT perspective.
For further insights, please visit our Baker Tilly member firm’s website here. |
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Meet one of our global colleagues: Andreas |
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| Andreas Papagavriel Partner | Cyprus
Andreas is a Partner at Baker Tilly South East Europe, based in Cyprus. He joined the firm in 2015 as a trainee and has steadily progressed through the ranks to become a key member of the leadership team.
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MHA is the trading name of both (i) MHA Audit Services LLP, a limited liability partnership registered in England and Wales with company number OC455542 and (ii) MHA Advisory Ltd, a company registered in England and Wales with company number 16233746. A list of partners' names is open for inspection at MHA’s registered office at The Pinnacle, 150 Midsummer Boulevard, Milton Keynes, MK9 1LZ. MHA is an independent member of Baker Tilly International Limited, the members of which are separate and independent legal entities. Arrandco Investments Limited is the registered owner of the UK trade mark for the name Baker Tilly. The associated logo is used under licence from Baker Tilly International Limited Further information can be found via our website.
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