Key IFRS-Tax Intersections
IAS 12 — Income Taxes
New relevance with DMTT. Deferred tax on temporary differences. Top-up tax recognized under IAS 12 exception for Pillar Two. Separate disclosure of DMTT-related taxes in financial statements.
IFRS 15 — Revenue
Revenue recognition timing may differ from VAT tax point. Performance obligation completion ≠ invoice date. Variable consideration (discounts, rebates) — VAT adjustment timing. Contract modifications.
IFRS 16 — Leases
Right-of-use asset — no VAT impact (financial model). Lease payments — VAT charged per payment (continuous supply). Sale and leaseback — TOGC analysis needed. Sub-leasing VAT treatment.
IFRS 9 — Financial Instruments
Expected credit losses — no VAT adjustment for ECL provisions. Fair value gains — outside VAT scope. Hedge accounting — no impact on VAT treatment of hedged items.