The OECD has hosted its sixth Global Forum on VAT to advance international dialogue on efficient, future-ready VAT systems in the context of digital transformation. The importance of global co-ordination on VAT to support trade and investment while safeguarding vital tax revenues was highlighted.  

Revenue has created a new guidance document on the framework, scope, and objectives of the International Cooperation and Capacity Building (ICCD) unit that manages International Cooperation and Technical Assistance and Capacity Building (TACB) requests in Revenue.

Revenue has updated its guidance on the main purpose tests to explain the application of the 'reasonable to consider' test and to clarify how the objective tests should apply.  The guidance outlines that the essence of the ‘reasonable to consider’ test is to assess whether the taxpayer has genuinely considered the tax consequences of a transaction in the same manner as a reasonable taxpayer would do so. The objective ‘main purpose’ test applies to disclosures of a transaction under the mandatory disclosure regime and when assessing a transaction in light of the anti-avoidance provisions under section 811C TCA 1997. When applying a main purpose test, the guidelines outline that it is first necessary to determine if it is objective (what a reasonable man on the street would think) or subjective (what did the taxpayer actually have in mind).  

The OECD has issued a revised version of the Manual on Effective Mutual Agreement Procedures (MEMAP). The updated guidance by the Inclusive Framework on BEPS, is intended to strengthen cross-border tax treaty disputes resolution. 

Revenue has updated its guidance on Residential Zoned Land Tax (RZLT) to reflect the amendments provided for in Finance Act 2025. The main changes relate to the new provisions where landowners request rezoning of land, the exemption where landowners are precluded from developing land, and certain provisions relating to the due date for payment of liabilities in situations where liabilities arise after death.

Revenue has updated its guidance on the exemptions for certain profits specifically those arising from production, maintenance and repair of certain musical instruments and from the microgeneration of electricity by an individual at his or her sole or main residence to reflect an extension of these reliefs to 31 December 2028, as provided for by Finance Act 2025. The guidance on accelerated capital allowances for slurry storage facilities has also been updated to reflect the extension of the scheme to 31 December 2029.

Revenue has issued updated guidance on the taxation of unit trusts for pension schemes and charities – Exempt Unit Trusts (EUTs) to reflect a change introduced by Finance Act 2025. The change clarifies that, for the purposes of section 731(5) TCA 1997, an investment undertaking cannot treat a gain on selling units in an exempt unit trust as fully exempt from capital gains tax.

Revenue has updated the agents guide to the Collector General’s division to include new guidance relating to the Vacant Homes Tax and to provide information on the calculation of a Local Property Tax charge based on the property’s valuation as of 1 November 2025. Paragraph 15 of the guidance has been updated to reflect the requirements under Companies Act 2014 in respect of company addresses. This paragraph also includes instructions for updating addresses on ROS and confirms that all requests for a change of address must be submitted through ROS for information security purposes.

Last week Revenue published statistics relating to 2025 PAYE tax returns filed to date this year on the back of which PAYE taxpayers are being encouraged to use the myAccount service to finalise their tax position. The statistics showed that as at 23 January 2026, over 470,000 PAYE returns had been processed for 2025 which resulted in refunds of over €361 million to PAYE taxpayers. An analysis of Preliminary End of Year Statements indicates that an underpayment of tax arose in approximately 9 percent of the returns yet to be filed. Revenue will engage with the relevant taxpayers to collect the tax due by reducing tax credits over a four-year period from 2027. Revenue has reported they estimate a further €462 million of tax may have been overpaid by PAYE taxpayers in 2025. In light of this, Revenue has launched a campaign to encourage PAYE taxpayers to use the myAccount service to finalise their tax position. Revenue has provided details on how to access this service and detailed guidance on submitting a PAYE tax return and claiming tax credits and reliefs.  

Revenue has issued a press release acknowledging the difficulties the recent exceptional weather may have caused for timely tax compliance.  They have also stated that they will work with adversely impacted taxpayers and businesses to help maintain their good compliance records despite the disruption. The press release outlines the strong record that Revenue has of agreeing flexible payment arrangements for taxpayers and businesses facing temporary cash‑flow pressures. It also advises those impacted by Storm Chandra to contact the Collector-General’s office once their situation permits, to agree mutually agreeable arrangements for restoring timely tax compliance.  

The Institute has written to Tánaiste and Minister for Finance, Simon Harris and Minister for Enterprise, Tourism and Employment, Peter Burke to outline the administrative burdens arising from tax issues affecting cross-border and remote/hybrid working on the island of Ireland. The issues outlined in the letters reflect the outputs from the Institute’s Joint Tax Working Subgroup on Cross‑Border and Remote/Hybrid Working, established in 2024 and highlight the key obstacles and challenges currently hindering trade and the full realisation of a truly integrated all-island labour market. Amongst the issues raised were: The added administrative responsibilities for both employers and employees of operating a dual payroll. The administration burden and complexities arising when the social welfare obligations and benefits arise under a different jurisdiction than the country of employment. The uncertainty on the tax treatment of pension contributions and retirement income in the context of hybrid working arrangements for frontier workers. The need for education, training and better guidance from government bodies and the tax authorities. We will continue to advocate on this issue and welcome the opportunity to meet with the Ministers to present our findings in greater detail and to discuss potential solutions. We also intend raising these issues with the Irish Minister’s counterparts in Northern Ireland in the coming days.

In this week’s cross-border trading corner, we bring you the latest guidance updates and publications. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. In December last year, the European Commission announced a reinforcement of controls on products imported into the EU which you can read more about below. And last week in the House of Lords, Lord Newby moved a ‘Motion to take Note’ on the case for a UK-EU customs union and the impact of connections with the EU single market on the UK economy which was then debated in the House.   Update on reinforcement of controls on products imported into the EU In December the European Commission announced a reinforcement of controls on products imported into the EU. Within the measures listed, was an increase in the frequency of checks on consignments of goods of animal origin entering the EU. The Commission wrote to DEFRA stating that the frequency rates will now be updated every four months; previously this was reviewed every six months. The last series of rate changes was made on 1 October 2025, and the Commission has launched the next series of rate changes which took effect from 1 February 2026. More details are available in an email from the UK Government’s Borders Directorate Communications Team. Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows: Designated export place (DEP) codes for Data Element 5/23 of the Customs Declaration Service, Maritime ports and wharves location codes for Data Element 5/23 of the Customs Declaration Service, External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, Find out what types of Authorised Economic Operator status you can apply for, Apply to operate a customs warehouse, How to use a customs warehouse, Importing sanitary and phytosanitary controlled goods into Great Britain that interact with the Border Trade Matching Service, and Simplified rates for bringing personal goods into the UK.