Israel insists vaccine doses sent to Palestine were 'completely valid'

Israel's health ministry insisted on Saturday that a shipment of Covid-19 vaccine doses the Palestinians rejected as about to expire were "completely valid".

The Palestinian Authority on Friday called off a deal that would have had Israel provide it with one million doses in exchange for vaccines from Pfizer that the Palestinians are scheduled to receive later this year.

Palestinian Authority spokesman Ibrahim Melhem said an initial delivery of about 90,000 Pfizer doses failed to conform "to the specifications contained in the agreement, so Prime Minister Mohammad Shtayyeh instructed the minister of health to cancel the agreement".

"The government refuses to receive vaccines that are about to expire," Mr Melhem said, in a statement carried by the official Wafa news agency.

The Israeli Health Ministry said the vaccines it delivered were "completely valid", although the prime minister's office acknowledged on Friday that they were "about to expire", without specifying the use-by date.

"The Palestinian Health Ministry received Pfizer vaccines that were valid, with expiration dates that were known, agreed on and that matched the agreement between the two sides," the ministry said.

Israel launched a sweeping vaccination campaign after obtaining millions of doses of the Pfizer vaccine.

More than 55 percent of Israel's population – about 5.1 million people – have received both doses of the vaccine.

Far fewer Palestinians – just over 270,000 people – have received their two doses in the West Bank and Gaza, according to the Palestinian Health Ministry.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer