Live updates: Follow the latest on Israel-Gaza
Spain will stop any ship carrying weapons to Israel from docking at its ports, Foreign Minister Jose Manuel Albares said on Friday.
Ministers say one such vessel, the Danish-flagged Marianne Danica, has already been stopped as Spain leads calls in Europe for a ceasefire in Gaza.
"The Middle East does not need more weapons. It needs more peace," Mr Albares told Spanish broadcaster RTVE. "If there is a ship bound for Israel with weapons, we are not going to allow the stopover."
There was confusion as activists demanded a second vessel, the Borkum, be stopped from docking in Cartagena over fears it was delivering arms to Israel.
The government said campaigners had got the wrong boat and that the Borkum was heading to the Czech Republic, not the Middle East.
However, left-wingers remained concerned on Friday that the Czech Republic could be an intermediate stop on the way to Israel.
Spain could become a "transit country" for arms shipments to Israel after attacks on shipping on the Red Sea route, said Ione Belarra, the leader of left-wing party Podemos.
Reports said it was carrying 27 tonnes of explosive material from Madras, in India, to the port of Haifa in Israel.
By contrast, the Borkum was carrying ammunition to the Czech Republic for Soviet-era weapons that Israel does not use, the government says.
Mr Albares said Spain has not approved any arms export licences for Israel since the war broke out after the October 7 attack by Hamas.
Arms debate
Pressure is mounting on others in Europe to take a similar stance, with the likes of UK and Germany being challenged in court over arms sales to Israel.
A Dutch court in February ordered the government to halt to export of F-35 fighter jet parts to Israel, prompting similar lawsuits in France and Denmark.
Meanwhile, Germany defeated a bid by Nicaragua to get the International Court of Justice to demand an end to arms sales to Israel.
Spain has been one of the EU's most vocal critics of Israel, suggesting the bloc could cut trade ties if it finds there are human rights breaches in Gaza.
Several EU countries including Spain and Ireland are preparing to recognise a Palestinian state, with an announcement possible as soon as next week.
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
