by Ariful | Mar 17, 2026 | UK Updates
1. Missing the MTD for Income Tax Deadline
The biggest shift this year is the mandatory rollout of Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA). From 6 April 2026, if you are a sole trader or a landlord with a total qualifying income over £50,000, the old way of filing once a year is dead.
The Mistake: Thinking you can still submit a single annual return through the HMRC portal in January.
The Fix: You must register for MTD for ITSA immediately. Under the new rules, you are required to keep digital records of every transaction and submit quarterly updates to HMRC using compatible software. Waiting until the end of the tax year will result in a compliance nightmare.
Registering now allows us to integrate your daily bookkeeping into a compliant flow. This ensures your data is “HMRC-ready” every single day, rather than scrambling every three months. You can learn more about why hiring e-commerce accountants makes your life easier when navigating these digital shifts.
2. Underestimating the 2% Dividend Tax Hike
For many directors of UK Limited Companies, dividends have long been a tax-efficient way to extract profit. However, as of April 2026, those rates are climbing.
The Mistake: Failing to adjust your extraction strategy to account for the new rates.
The Fix: Understand the numbers. From April 2026, dividend tax rates are rising by 2%.
- Basic rate taxpayers will now pay 10.75%.
- Higher rate taxpayers will now pay 35.75%.
If you are an investor or a business owner relying on these payouts, you need to calculate the impact on your net take-home pay today. While we focus on the operational filing and calculation of these taxes, you should ensure your internal accounts reflect these higher liabilities so you aren’t hit with a surprise bill next year.
3. Miscalculating Capital Gains on Business Disposals
If you were planning to sell your business or significant assets this year, the math just changed. The tax relief for entrepreneurs is becoming less generous.
The Mistake: Assuming your Capital Gains Tax (CGT) rate remains at 14% for qualifying disposals.
The Fix: Prepare for the increase to 18%. The rate for those claiming Business Asset Disposal Relief (BADR) or Investors’ Relief is stepping up.
If you are in the middle of a sale, the timing is critical. To stay compliant and ensure you are calculating your liabilities correctly, you must use precise data. Small errors in CGT calculations are a magnet for audits. Check our guide on how to avoid HMRC self-assessment tax investigations to see how clean reporting keeps the taxman away.
4. Ignoring the New £2.5 Million Inheritance Tax Cap
This update hits family-owned businesses and agricultural landowners the hardest. For years, Agricultural Property Relief (APR) and Business Property Relief (BPR) allowed many to pass on assets with 100% relief.
The Mistake: Relying on outdated estate planning that assumes 100% relief on all business assets.
The Fix: Audit your asset value now. From 6 April 2026, APR and BPR are capped at a combined £2.5 million. Anything above this threshold only receives 50% relief. Furthermore, AIM shares: previously a staple for IHT planning: have had their relief slashed to 50% across the board.
Because Sterlinx Global provides end-to-end compliance, we ensure that your year-end accounts accurately reflect the value of these assets, providing the data needed for your estate considerations.
5. Working with Unregistered Tax Advisers
HMRC is cracking down on who can represent you. This is a move toward professionalizing the industry and reducing “ghost” preparers who submit inaccurate claims.
The Mistake: Continuing to use a “friend of a friend” or an informal preparer who isn’t officially registered with HMRC.
The Fix: By May 2026, all tax advisers interacting with HMRC on behalf of clients must be registered.
As a Global Tax Compliance Suite, Sterlinx Global is fully integrated into the regulatory framework. When we handle your VAT, bookkeeping, and year-end accounts, you are backed by a structured, professional entity. This registration requirement is designed to protect you; don’t risk your business by using an adviser who hides from the regulator.
6. Treating Cross-Border E-commerce like Domestic Retail
If you sell on Amazon, Shopify, or eBay, the 2026 updates place a higher burden on transaction-level reporting. HMRC is increasingly using data-sharing agreements with digital platforms to cross-reference your reported income.
The Mistake: Not reconciling global sales with UK VAT requirements and the new MTD quarterly updates.
The Fix: Implement a daily compliance model. E-commerce moves too fast for monthly or quarterly “catch-up” bookkeeping. You need to ensure that your VAT calculations: especially if you are selling into Europe or the US: are handled in real-time.
For those expanding into Europe, the rules are even tighter. Whether you are looking at specifics of French VAT for e-commerce or trying to stay compliant with France’s VAT e-invoicing rules, the data must be seamless. Use our VAT calculator to keep your pricing compliant across borders.
7. The “January 31st” Procrastination Habit
The tradition of the “January tax rush” is officially a liability. With the 2026 updates, the “once-a-year” mindset will lead to automatic penalties.
The Mistake: Waiting until the end of the year to organize your receipts and invoices.
The Fix: Move to a “Daily Compliance” mindset. Since MTD for ITSA requires quarterly updates, your bookkeeping must be current every single month.
Don’t worry; this shift actually benefits you. By having a clear view of your tax liability throughout the year, you can manage cash flow more effectively. You won’t be surprised by a massive tax bill in January because you: and we: will have seen it coming months in advance.
by Ariful | Mar 17, 2026 | US Updates
1. Prepare for the Section 122 Surcharge
The most significant shift in U.S. trade policy this year follows the Supreme Court ruling on February 20, 2026. The court determined that tariffs previously issued under the International Emergency Economic Powers Act (IEEPA) were invalid. In response, the U.S. government moved quickly to implement a new framework.
As of February 24, 2026, a Section 122 surcharge under the Trade Act of 1974 has replaced the old IEEPA tariffs. Currently, this surcharge is set at 10%, but it is expected to increase to 15% in the coming months. This surcharge applies to the vast majority of imported goods entering the United States.
What you must do:
- Update your landed cost models: Immediately factor in a minimum 10% surcharge for all U.S. imports.
- Audit your current inventory: Determine how this additional cost impacts your current pricing strategy.
- Stay alert for the 15% hike: This increase is expected to happen with little warning once the administrative transition is complete.
2. Manage the Complexity of Stacking Tariff Rates
The new Section 122 surcharge does not exist in a vacuum. It is an “additive” tax, meaning it stacks on top of existing trade barriers. If your products were already subject to Section 232 (steel and aluminum) or Section 301 (China-specific) tariffs, you are now facing multiple layers of duties.
This stacking effect significantly increases the compliance burden for international sellers. U.S. Customs and Border Protection (CBP) systems are currently being updated to handle these complex calculations. During this transition, incorrect tariff coding is a high risk.
Why this matters for your compliance:
- Avoid costly corrections: If your customs broker uses outdated codes, you may face retroactive bills or penalties once the CBP systems are fully synchronized.
- Calculate for the “Worst Case”: We recommend modeling your margins under both the 10% and 15% scenarios to ensure your business remains viable regardless of sudden rate hikes.
- Maintain precise records: As part of your ongoing international bookkeeping, keep every customs entry form organized for potential audits.
3. Account for Continued Suspension of Duty-Free Exemptions
For years, many e-commerce sellers relied on the “de minimis” threshold, which allowed low-value shipments (under $800) to enter the U.S. duty-free. However, the suspension of these minimum duty-free allowances remains in full effect in 2026.
This means that even small, individual parcels sent directly to consumers are now subject to the same Section 122 surcharges and tariffs as bulk shipments. This change has fundamentally altered the direct-to-consumer (DTC) model for international brands.
Take these steps to protect your margins:
- Notify your customers: Ensure your checkout process clearly explains who is responsible for these duties to avoid “package refusal” at the border.
- Consider bulk warehousing: Moving goods in larger quantities to a U.S.-based fulfillment center may allow for more predictable duty management compared to thousands of individual small-package entries.
- Use a VAT calculator for global sales: If you sell across multiple regions, use tools to see how different tax environments compare to the current U.S. situation.
4. Align with Global VAT and GST Registration Trends
While the U.S. focuses on surcharges and sales tax, the rest of the world is following suit with digital and physical goods taxation. More than 100 countries now require foreign sellers to register for VAT or GST when serving local consumers.
The U.S. “Economic Nexus” rules for sales tax are becoming the global blueprint. If you are selling into the U.S., you likely have obligations in other major markets too. For instance, Turkish sellers or European brands expanding into the U.S. must often manage parallel compliance tracks.
Stay compliant across borders:
- Monitor Nexus thresholds: In the U.S., each state has different rules (often $100,000 in sales or 200 transactions) that trigger sales tax registration.
- Expand with confidence: If you are also looking at European markets, ensure you understand specific rules for various jurisdictions and VAT registration requirements for non-EU sellers.
- Consolidate your filing: Don’t manage ten different logins for ten different tax authorities. A Global Tax Compliance Suite brings your U.S. Sales Tax and international VAT/GST filings into one managed workflow.
5. Review Incoterms to Determine Tariff Liability
Who pays the new 10-15% Section 122 surcharge? The answer lies in your Incoterms (International Commercial Terms). This is the “fine print” that determines whether the seller or the buyer is legally responsible for duties and taxes at the border.
If you are selling under DDP (Delivered Duty Paid) terms, you are responsible for the Section 122 duties. If you haven’t raised your prices to reflect the new 10% surcharge, that cost comes directly out of your profit. Conversely, under DAP (Delivered at Place) or FOB (Free on Board), the buyer or importer of record bears the cost.
Actionable instructions for sellers:
- Reassess supplier contracts: Review your agreements with manufacturers and freight forwarders.
- Adjust pricing strategies: If you keep DDP terms to provide a better customer experience, you must increase your retail price to cover the 10-15% surcharge.
- Consult with experts: Determining the right Incoterm is a balance between customer satisfaction and financial risk. This is why having a compliance partner is essential.
Your 2026 USA Tax Compliance Checklist
To help you stay organized, here is a quick checklist of what you should be doing this week:
- Check your HS Codes: Ensure your product classifications are accurate to avoid overpaying on the new surcharges.
- Review Sales Volume: Identify which U.S. states you have reached “Economic Nexus” in for Sales Tax purposes.
by Ariful | Mar 17, 2026 | UK Updates
The Big Headline: The Federal Tax Rate Drop to 14%
The most impactful change for 2026 is the full implementation of the federal tax rate cut. While the transition began in mid-2025, 2026 marks the first full calendar year where the lowest federal tax bracket has been reduced from 15% to 14%.
This might seem like a small 1% shift, but for small business owners and individual taxpayers, it represents a meaningful reduction in your overall tax burden. This rate applies to the first $58,523 of your taxable income. If you are a business owner paying yourself a salary, this change directly impacts your personal take-home pay and your company’s payroll tax calculations.
Why This Matters for Your Cash Flow
Lower taxes at the bottom bracket mean more immediate liquidity. However, this also means your payroll software and accounting systems must be updated to reflect these new rates. If you are still using 2025 formulas, you might be over-remitting to the CRA, which essentially gives the government an interest-free loan of your money.
2026 Federal Tax Brackets: The New Landscape
To account for inflation and maintain purchasing power, the CRA has indexed all tax brackets upward by 2%. This “bracket creep” protection ensures that if your income rose slightly to keep up with the cost of living, you aren’t pushed into a higher tax percentage unnecessarily.
Here is the breakdown of the federal tax brackets for the 2026 tax year:
| Taxable Income Range |
2026 Federal Tax Rate |
| First $58,523 |
14% |
| Over $58,523 up to $117,045 |
20.5% |
| Over $117,045 up to $181,440 |
26% |
| Over $181,440 up to $258,482 |
29% |
| Over $258,482 |
33% |
Note: These are federal rates only. You must also factor in your provincial or territorial tax rates, which vary significantly depending on whether you are based in Ontario, British Columbia, Quebec, or elsewhere. Navigating these layers can be complex, especially for international entrepreneurs. If you are a non-resident managing a Canadian entity, you might want to learn more about how tax works for a foreign director to ensure you are meeting all cross-border obligations.
Maximum Your Savings: New TFSA and RRSP Limits
Investing back into your future is a core part of a smart tax strategy. The CRA has increased the contribution limits for registered accounts for 2026, offering more “tax-free” or “tax-deferred” space.
1. Tax-Free Savings Account (TFSA)
The annual TFSA contribution limit for 2026 is $7,000. If you have been a Canadian resident since the TFSA was introduced in 2009 and have never contributed, your total cumulative room is now higher than ever. Using this space is a “no-brainer” because any investment growth or withdrawals are completely tax-free.
2. Registered Retirement Savings Plan (RRSP)
The maximum RRSP contribution limit has jumped to $33,810 for 2026 (up from $32,490 in 2025). Remember, your individual limit is capped at 18% of your earned income from the previous year, up to this maximum. Contributing to an RRSP is one of the most effective ways to drop your taxable income into a lower bracket.
Immediate Action: Mark Your Deadlines
Missing a CRA deadline is the fastest way to lose your hard-earned profits to interest and penalties. As we move through 2026, here are the dates you cannot afford to forget:
- April 30, 2026: Deadline to file 2025 personal income tax returns and pay any balances owing.
- June 15, 2026: Deadline for self-employed individuals to file their 2025 returns. Crucial: Even though you have until June to file, any taxes owed were still due by April 30. Interest starts accruing on May 1st.
- Monthly/Quarterly: GST/HST remittances. If your business is registered for GST/HST, your filing frequency depends on your annual revenue.
Don’t wait until the week before these dates to get your paperwork in order. If you’re feeling overwhelmed by the volume of receipts and invoices, it might be time to ask: when should you hire an accountant? Early preparation is the difference between a smooth filing and a stressful audit.
Business Compliance: Moving Beyond Bookkeeping
For Canadian corporations and SMEs, compliance is more than just “doing the books.” The CRA is increasingly focused on digital transparency. A growing trend toward real-time reporting and digital integration is reshaping how businesses must manage their tax obligations.
From daily bookkeeping to calculating your precise tax liability, proper compliance ensures that your data is transformed into accurate, ready-to-file returns.
If your business operates across borders—perhaps selling into the UK or Europe—you also need to manage international VAT requirements alongside your Canadian obligations. Understanding the nuances, such as VAT sales vs non-VAT sales, is vital to ensuring your global pricing strategy remains profitable.
GST/HST and the Small Supplier Threshold
If you are a new business owner in 2026, keep a close eye on your “Small Supplier” status. Generally, once your taxable revenues exceed $30,000 in a single calendar quarter (or over four consecutive quarters), you must register for GST/HST.
Failing to register when required can be a costly mistake, as the CRA will hold you liable for the tax you should have collected from your customers, even if you didn’t actually charge them. This is similar to the risks faced by UK businesses; you can read more about what happens if you go above the VAT threshold to see how these tax principles apply internationally.
Your 3-Step Quick-Start Checklist
Don’t let the changes paralyze you. Do these three things first:
- Update Your Payroll: Ensure your 2026 withholdings reflect the new 14% base rate and indexed thresholds.
- Max Your Contributions: Schedule your $7,000 TFSA contribution and calculate your RRSP room based on your 2025 Notice of Assessment.
- Audit Your Records: Ensure your bookkeeping for the year is organized and current so nothing slips through the cracks when filing season arrives.
by Ariful | Mar 17, 2026 | Tax & Accounting
Operating an E-commerce Business in Australia: ATO Compliance in 2026
Operating an e-commerce business in Australia is more complex than just picking winning products and running high-converting ads. By 2026, the Australian Taxation Office (ATO) has refined its digital surveillance to a level that was unimaginable a few years ago. If you think your Shopify sales, Amazon payouts, or Stripe transfers are invisible to the taxman, it is time to think again.
The ATO’s sophisticated data-matching programs are specifically designed to catch discrepancies in the e-commerce sector. At Sterlinx Global, we see firsthand how easily a small oversight can escalate into a full-scale audit. Whether you are a local Australian entity or an international brand selling into the Aussie market, staying compliant requires more than just luck, it requires precise, ongoing compliance.
In this guide, we will break down the most common Australian tax mistakes that trigger ATO red flags and how our global tax compliance suite can keep your business protected.
1. The Data-Matching Dragon: Platform Revenue vs. BAS
The single biggest mistake e-commerce sellers make is assuming the ATO only knows what you tell them. In reality, the ATO receives data directly from platforms like Amazon, eBay, Shopify, and Etsy, as well as payment processors like PayPal, Stripe, and Afterpay.
If the total revenue reported on your Business Activity Statement (BAS) does not align with the data the ATO receives from these third parties, an automated flag is generated.
Why this happens:
- Gross vs. Net Reporting: Many sellers mistakenly report the “net” amount deposited into their bank account (after fees) instead of the “gross” sales amount.
- Multiple Channels: Forgetting to aggregate sales from a smaller, secondary platform.
- Timing Discrepancies: Not accounting for sales made at the end of a quarter that haven’t hit the bank yet but are recorded in the platform’s data.
The Fix: You must reconcile your platform reports with your accounting software every single month. This is why we focus on high-frequency data syncing at Sterlinx Global, to ensure your books match what the platforms are reporting in real-time.
2. Ignoring the $75,000 GST Threshold
In Australia, if your business has a turnover of $75,000 AUD or more (or you expect it to reach that within the next 12 months), you must register for Goods and Services Tax (GST).
Many e-commerce entrepreneurs wait until they see the cash in the bank before registering. However, the ATO views the threshold on a “prospective” basis. If you see a massive spike in sales that suggests you will hit $75,000 soon, you need to register immediately.
Common GST Errors:
- Failing to register on time: This results in back-taxed GST payments that come out of your profit margin.
- International Sales: Even if you sell to customers outside Australia, those sales often count toward your $75,000 threshold, even if you don’t charge GST on them.
- Incorrect GST Credits: Claiming GST “input tax credits” on items where no GST was actually charged (like international software subscriptions or overseas inventory).
The Benefit: Registering correctly and on time allows you to claim back the GST you pay on your business expenses, which can significantly improve your cash flow.
3. The Inventory and COGS Discrepancy
The ATO uses industry benchmarks to determine if your reported figures make sense. If your Cost of Goods Sold (COGS) is disproportionately high compared to your revenue, or if your ending inventory levels look suspicious, you will be flagged for a manual review.
E-commerce businesses often struggle with inventory management, especially when using 3PLs (Third Party Logistics) or offshore warehousing.
Audit Red Flags:
- Large Year-End Write-downs: Suddenly claiming a massive loss on “damaged” or “unsaleable” stock right before the end of the financial year.
- Estimated Figures: Using “round numbers” for inventory instead of actual stocktake data.
- Customs Inconsistency: If your reported inventory purchases don’t match the import data held by Australian Border Force, the ATO will want to know why.
At Sterlinx Global, we help bridge the gap between your physical logistics and your financial reporting. By maintaining a clean audit trail of your inventory movement, we ensure your COGS claims are defensible and accurate.
4. Mismanaging International Sales and Currency Conversion
If you are an Australian business selling to the US, UK, or EU, your tax obligations don’t stop at the border. Conversely, if you are a foreign entity selling to Australians, you may have “Significant Global Entity” (SGE) obligations or Low-Value Imported Goods (LVIG) GST requirements.
The Currency Trap
The ATO requires all income and expenses to be converted into Australian Dollars (AUD) for tax purposes. Many sellers use a single average exchange rate for the whole year, which can lead to significant errors if the AUD/USD or AUD/GBP rate fluctuates.
What you need to do:
- Use the exchange rate applicable at the time of the transaction or an approved ATO daily rate.
- Properly document “forex gains or losses” when transferring money between overseas wallets (like Airwallex or Wise) and your Australian business account.
- Ensure your international VAT and GST filings are consistent across all jurisdictions.
5. Poor Record Keeping and Missing Digital Trails
In the world of e-commerce, the “shoebox full of receipts” has been replaced by a “cloud full of PDFs.” However, many sellers still fail to keep adequate records. Under Australian law, you must keep records for five years.
The ATO is increasingly looking at “split” payments, where a business takes some payments via a website and others via bank transfer or cash. If your point-of-sale (POS) data doesn’t align with your bank statements, an audit is almost certain.
Checklist for Compliance:
- Tax invoices for all purchases over $82.50 (including GST).
- Records of any private use of business assets.
- Detailed logs of international shipping and customs duties paid.
- Monthly reconciliations of all payment gateways (Stripe, PayPal, etc.).
How Sterlinx Global Protects Your E-commerce Business
Navigating the ATO’s requirements shouldn’t keep you up at night. As a Global Tax Compliance Suite, Sterlinx Global Ltd provides an end-to-end solution for businesses scaling in and out of Australia.
We don’t just give you advice and leave you to do the work. We handle the operational execution:
- Bookkeeping & Data Syncing: We pull data directly from your sales channels to ensure 100% accuracy.
- GST & BAS Filings: We calculate and file your Australian GST obligations on time, every time.
- Global Expansion: If you are moving from Australia into the UK or EU, we handle your international tax filings and compliance.
by Ariful | Mar 17, 2026 | EU VAT Updates
Ireland’s Personal Tax Landscape: More Money in Pockets
The Irish government has introduced several measures to ease the burden on individual taxpayers and employees, which directly affects payroll and staff retention for SMEs.
The USC Ceiling Shift
Effective January 1, 2026, the Universal Social Charge (USC) 2% rate ceiling has increased to €28,700. This change is designed to benefit full-time minimum wage workers and middle-to-high earners by keeping more of their income at the lower tax bracket. For business owners, this means your employees are seeing a slight boost in take-home pay without an additional cost to your payroll budget.
Rental and Mortgage Support
If you or your employees are navigating the Irish property market, two key extensions are now in play:
- Rent Tax Credit: Extended through 2028, providing up to €1,000 annually for single individuals and €2,000 for couples.
- Mortgage Interest Tax Relief: This has been extended through 2026. For 2026 claims, a maximum credit of €625 is available.
Boosting Business Growth: R&D and Entrepreneur Relief
Ireland continues to position itself as a hub for innovation. If your business is involved in developing new products or improving existing processes, 2026 brings some very welcome news.
The 35% R&D Tax Credit
The Research & Development (R&D) tax credit rate has officially increased from 30% to 35%. Furthermore, the first-year payment threshold has risen to €87,500. This is a significant benefit for tech-heavy SMEs and startups. Precise bookkeeping is essential to claim these credits accurately, turning your innovation into direct capital.
Entrepreneur Relief Expansion
For those looking at the long game, the lifetime limit for Capital Gains Tax (CGT) entrepreneur relief has increased from €1 million to €1.5 million. This update could potentially save entrepreneurs up to €115,000 when selling their business. It is a clear signal that the 2026 landscape is geared toward rewarding those who build and scale successful enterprises.
The 2026 VAT Shift: Key Dates to Remember
VAT is often a complex hurdle for cross-border businesses. Several adjustments in Ireland and across the EU require immediate attention to ensure your pricing and accounting remain accurate.
Ireland’s 9% VAT Adjustments
Keep a close eye on your calendar for July. From July 1, 2026, a reduced 9% VAT rate will apply to:
- Food and catering services.
- Hairdressing services.
Additionally, the 9% VAT rate on gas and electricity has been extended through 2030 to help manage energy costs. Understanding how these rates affect your specific sales is important for maintaining accurate margins.
EU Cross-Border VAT and E-Invoicing
Across the broader EU, the push for digital transparency is accelerating. France, in particular, has moved forward with strict e-invoicing rules. If you are selling into the French market, you must ensure your systems are compatible with these digital mandates to avoid delays in clearance and potential penalties.
Sustainability and Housing: Green Incentives
The 2026 tax year also emphasizes climate goals. For businesses managing a fleet or providing company cars:
- Electric Vehicles (EVs): A new 6-15% Benefit-in-Kind (BIK) category for EVs is now active.
- VRT Relief: The VRT relief for electric vehicles has been extended to December 31, 2026.
In the property sector, the VAT rate on new completed apartments was reduced to 9% late last year, a move aimed at stimulating the housing supply which continues to influence the market in 2026.
How to Stay Compliant in 2026
Managing tax and VAT across multiple jurisdictions requires more than knowing the rates; it requires proper execution. Missing a deadline or miscalculating a threshold can lead to significant setbacks.
1. Monitor Your Thresholds
Don’t wait until you’ve already passed the limit. Understanding VAT registration requirements allows you to prepare before it becomes an emergency.
2. Streamline Your Bookkeeping
2026 is the year of digital compliance. If you are still using manual spreadsheets, you are at risk. Implementing automated compliance solutions where calculations and filings are handled systematically can protect your business.
3. Seek Expert Help When Scaling
Expansion into the EU, USA, or Canada brings a host of new rules. Knowing when you should hire an accountant is a strategic decision. For many, the answer is “the moment you decide to go global.”
Your 2026 Compliance Checklist
- Update Payroll Systems: Reflect the new USC 2% ceiling of €28,700.
- Review R&D Projects: Prepare documentation to claim the increased 35% credit.
- Adjust Pricing: Prepare for the July 1st VAT changes in Ireland for food and service sectors.
- Check EU E-Invoicing: Ensure compliance if selling to France or other digital-first EU nations.
- Assess EV Benefits: Review your company vehicle policy to take advantage of extended VRT relief.
Frequently Asked Questions (FAQ)
What is the new USC threshold in Ireland for 2026?
As of January 1, 2026, the 2% USC rate ceiling has been increased to €28,700.
When does the new 9% VAT rate apply in Ireland?
The reduced 9% VAT rate for food, catering services, and hairdressing services comes into effect on July 1, 2026.
What is the new R&D tax credit rate?
The Research & Development tax credit rate has increased from 30% to 35%, with the first-year payment threshold rising to €87,500.
Has the entrepreneur relief limit changed?
Yes, the lifetime limit for Capital Gains Tax entrepreneur relief has increased from €1 million to €1.5 million.
What is the extended deadline for VRT relief on electric vehicles?
The VRT relief for electric vehicles has been extended through December 31, 2026.
