Indirect Tax
Ireland: Updated VAT guidance for accommodation and food services
Excerpts from various sources
The Irish Revenue Commissioners on 28 April 2026 issued Revenue eBrief No. 086/26 updating guidance on VAT rates applicable to accommodation, restaurant and catering services.
- Expenses related to restaurant and catering services, including food elements, will be subject to the 9% VAT rate from 1 July 2026
- Mixed supplies involving accommodation and food services must be apportioned where sold as a package
- Accommodation services remain subject to the 13.5% VAT rate
- Supplies of specified drinks continue to be taxed at the 23% standard VAT rate, even when provided as part of restaurant or catering services
- The guidance includes examples covering: VAT calculation for mixed supplies requiring apportionment, discounted packages, split payments made before and after 1 July 2026.
Bulgaria proposes a higher VAT registration threshold
Excerpts from various sources
The Bulgarian National Assembly on 30 April accepted for consideration Bill Nos. 52-654-01-2 and 52-654-01-14, which would amend the VAT Act. The proposed measures would increase the mandatory VAT registration threshold for micro and small enterprises from EUR 51,130 to EUR 85,000. The changes would come into force on 1 January 2027.
Dominican Republic: Six-month e-invoicing extension granted for MSMEs
Excerpts from various sources
The Dominican General Directorate of Internal Revenue (DGII) announced a six-month administrative extension starting from 15 May 2026, allowing micro, small and medium-sized enterprises (MSMEs) and unclassified taxpayers additional time to complete the implementation of mandatory e-invoicing.
The extension applies automatically and does not require taxpayers to submit a request. The DGII stated that taxpayers who fail to implement e invoicing after the extended deadline would be subject to tax violations and penalties established under Electronic Invoicing Law No. 32-23.
Transfer Pricing
Excerpts from various sources
In April 2026, the Australian Taxation Office (ATO) updated Practical Compliance Guideline (PCG) 2019/1 on transfer pricing for inbound distribution arrangements. While the core risk-based framework remains unchanged, the update reflects evolving business models, current economic conditions, and the ATO’s compliance experience. It also clarifies that the guideline applies to both goods and certain digital products or services where the relevant intellectual property is held offshore.
The update revises EBIT profit markers across general and industry-specific categories, including life sciences, ICT, and motor vehicles, and places greater emphasis on valueadding activities when assessing expected returns. As a result, some taxpayers may move between risk categories even if their pricing policies have not changed. The ATO continues to stress that these markers are risk indicators, not safe harbors.
The ATO has retained its four-tier risk framework while continuing to use five-year weighted average EBIT margins. Distributors outside the low-risk zone, particularly persistent loss-makers, can expect greater scrutiny. The update also highlights Advance Pricing Arrangements (APAs) as a means of managing risk and obtaining certainty. Overall, the changes modernize the existing framework rather than overhaul it, and taxpayers should reassess their transfer pricing positions against the revised benchmarks and ATO expectations.