- Saudi Arabia and Lithuania Changes: Saudi Arabia’s Zakat, Tax and Customs Authority has set the deadline for May 2025 VAT returns as June 30, 2025, for all VAT-registered entities. Meanwhile, Lithuania’s parliament approved a tax reform raising the standard VAT rate from 21% to 23%, effective January 1, 2026, as part of broader efforts to enhance public finances.
- Digital Compliance Initiatives in Pakistan and Finland: Pakistan has extended the deadline for integrating taxpayer invoicing systems with the Federal Board of Revenue to improve digital compliance and VAT enforcement. Finland is proposing a phased implementation of real-time VAT reporting starting in 2026, requiring near real-time electronic submission of VAT data to align with EU digital standards.
- U.S. States’ Tax Reforms: Various U.S. states are modernizing their tax codes: Minnesota has extended sales tax exemptions for data centers and introduced new fees for digital services; Washington has expanded its sales tax base to include digital and professional services; Louisiana has updated its marketplace facilitator laws to include accommodation intermediaries; and Illinois has revised its economic nexus thresholds and marketplace facilitator rules to adapt to the digital economy.
Source VAT IT Compliance
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