EU Tax Alert 217

EU Customs Reform enters into force:

Following its publication in the European Official Journal on 19 September 2026, the EU Customs Reform has entered into force, introducing a new Union Customs Code, a new EU Customs Authority and the EU Customs Data Hub, with the importer becoming the central customs actor and implementation phased in through 2034.

EDPS issues opinion on the DAC Recast proposal:

The EDPS supports consolidating the DAC framework into a single instrument but calls for stronger data protection safeguards, including retaining the ‘foreseeable relevance’ principle, clearer residence-identification rules, data minimisation, retention limits and stronger taxpayer rights, particularly regarding access to anti-money laundering and pension databases.

Belgian Constitutional Court allows landmark UTPR case (Pillar Two) to continue before the CJEU, despite SbS package:

The Belgian Constitutional Court confirmed that, despite the adoption of the Side-by-Side package, the American Free Chamber of Commerce retains a sufficient interest in pursuing its annulment action against the Belgian implementation of the Undertaxed Profits Rule, so that the preliminary reference to the CJEU on the validity of the UTPR provisions in the Pillar Two Directive can proceed.

CJ judgment on referral on denial of tax credit for services provided in Switzerland

(BT and CY v Finanzamt Siegburg, Case C-223/25):

The CJ held that the EU-Switzerland Agreement on the Free Movement of Persons precludes Germany from denying an income tax reduction for household and craftsperson's services solely because the taxpayer's household is located in Switzerland rather than in the EU or EEA.

CJ judgment on taxation of dividends received by non-resident investment funds and the neutralising effect of tax treaties

(Administración General del Estado v iShares Europe ETF, C-139/25):

The CJ ruled that a bilateral tax treaty can only neutralise a restriction on the free movement of capital arising from less favourable taxation of dividends paid to a non-resident fund where the resulting disadvantage is fully and effectively offset in practice, not merely theoretically available.