159 Vodafone Group Plc Annual Report 2026
Strategic report
Governance
Financials
Other information
At 31 March 2025, deferred tax assets and liabilities, before offset of balances within countries, were as follows: Amount credited/ (expensed)
6. Taxation (continued) Deferred tax The table below is an analysis of movements in the net deferred tax asset balance during the year. 2026 €m
Net recognised deferred tax asset/ (liability) €m 1,698 (773)
Gross deferred tax asset €m 2,831 266
Gross deferred tax liability €m (1,133) (1,036)
Less amounts unrecognised €m
in income statement €m
2025 €m
Tangible assets Intangible assets Tax losses Treasury related items
(6)
–
1 April
18,235 19,478 (834) (1,266) (82) 95
133
(3)
Foreign exchange movements Charged to the income statement Charged directly to OCI Credited / (charged) directly to equity Arising on acquisitions and disposals
(1,256) 31,367
– (13,843) 17,524
(43) (28) (28) (38)
583
(214) (789) (1,340) (209)
(568)
(199) (706) 197 494
(393)
(49) (3) (18) (2)
Temporary differences relating to revenue recognition Temporary differences relating to leases Other temporary differences
17 91
83
– –
(9)
Indexation of the opening balance in respect of hyperinflation in T ü rkiye
1,537 716
(13)
17,025 18,235
31 March
(1,266) 37,383
(4,721) (14,427) 18,235
31 March 2025
Deferred tax assets and liabilities, before offset of balances within countries, are as follows: Amount credited/ (expensed)
At 31 March 2025, analysed in the balance sheet, after offset of balances within countries, as:
Net recognised deferred tax asset/ (liability) €m 1,747 (640)
€m
Deferred tax asset Deferred tax liability 31 March 2025
19,033 (798) 18,235
Gross deferred tax asset €m 3,574 457
Gross deferred tax liability €m (1,419) (1,097)
Less amounts unrecognised €m
in income statement €m
Tangible assets Intangible assets Tax losses Treasury related items
20
(408)
Factors affecting the tax charge in future years The Group’s future tax charge, and effective tax rate, could be affected by several factors including tax reform in countries around the world, including changes arising from the OECD’s or European Commission’s work on Pillar Two global minimum tax and the taxation of the digital economy, changes arising from European Commission initiatives such as Business in Europe: Framework for Income Taxation ‘BEFIT’ or as a consequence of state aid investigations. The mix of countries in which the Group earn profits, statutory tax rates, future corporate acquisitions and disposals, any restructuring of our businesses and the resolution of open tax issues or uncertain tax positions (see below) could also affect the tax charge in future years. The Group is routinely subject to audit by tax authorities in the territories in which it operates. The Group considers each issue on its merits and, where appropriate, holds provisions in respect of the potential tax liability that may arise. As at 31 March 2026, the Group holds provisions for such potential liabilities of €312 million (2025: €314 million). These provisions relate to multiple issues across the jurisdictions in which the Group operates. As the tax impact of a transaction can be uncertain until a conclusion is reached with the relevant tax authority or through a legal process, the amount ultimately paid may differ materially from the amount accrued and could therefore affect the Group's overall profitability and cash flows in future periods. See note 29 ‘Contingent liabilities and legal proceedings’ to the consolidated financial statements.
(655)
–
(137) 30,081
– (13,302) 16,779
27
525
(575) (664) (1,473) (505)
(510)
(560) (590) 205
Temporary differences relating to revenue recognition Temporary differences relating to leases Other temporary differences
116 10 (215)
74
– – –
1,678 589
84
31 March 2026
(834) 36,978
(5,733) (14,220) 17,025
Analysed in the balance sheet, after offset of balances within countries, as:
€m
Deferred tax asset Deferred tax liability 31 March 2026
18,068 (1,043) 17,025
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