Even for a city as used to war as Beirut, the devastation wrought on Tuesday afternoon was staggering.
In a moment, the blast ripped through the city, killing scores, wounding hundreds and seemingly smashing every pane of glass in the city.
It was hard to walk through the streets. Shards of glass appeared to cover everything.
The roads were filled with destroyed cars, toppled trees, rubble and even a collapsed house.
Nothing about Tuesday afternoon’s huge explosion at Beirut port is clear except for the scale of the devastation.
For kilometres around the seafront, homes are damaged and destroyed.
Wounded people covered in blood walked the streets, unsure of what to do or where to go. The wail of ambulance sirens echoed through the choked roads.
Dr Michael Aoun, 24, was at home when the blast ripped through.
He grabbed his medical box and ran out the door, he said, as he knelt down to tend to the dozens of cuts suffered by Marie, 86.
No one seemed to believe the scale of the explosion that, in a matter of minutes, upended the city.
But despite the destruction, Beirutis came out to help each other through yet another national crisis.
At any time, a disaster of this scale would be crushing, but Lebanon is grappling with the worst economic crisis in its history, a growing rubbish crisis, rising unemployment and poverty and – on top of everything else – a surge in Covid-19 cases.
The government is already struggling to handle the myriad crises it is juggling.
Beirut Governor Marwan Abboud broke down in tears at the scene of the explosion.
Mr Abboud said at least 10 firefighters sent to tackle the first blaze disappeared without a trace.
“I have not witnessed so much destruction in my life," he said. "It's similar to what happened in Japan, in Hiroshima and Nagasaki.
“This is a national catastrophe.”
As the sky darkened to night, the black smoke still rose from Beirut port as helicopters dropped water from overhead and firemen on the ground sprayed the site with hoses.
Shopkeepers sat on the curbside opposite, looking at their shattered businesses.
Others combed through the rubble of their livelihoods.
Faris, a man in his 60s, was already starting to clean up his shattered shop.
Despite the destruction around him, he maintained the calm resolve for which the Lebanese have become renowned in the face of crisis.
“We're used to this,” Faris said. “It’s the 10th time we've been bombed. It started with the Germans in 1948.”
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
