Global VAT Highlights: Key Tax Developments in July 2025

EU
The European Commission released its Annual Report on Taxation, providing a detailed analysis of tax trends across EU Member States.

France
France’s tax authority (DGFiP) has become a Peppol Authority in preparation for mandatory e-invoicing and e-reporting in 2026.

Australia
Maryland will implement a 3% sales and use tax on various digital and IT services starting 1 July 2025, with exemptions for pre-July contracts and certain bundled software.

Estonia
Estonia increased its standard VAT rate from 22% to 24% effective 1 July 2025.

Norway
Norway launched a public consultation on 1 July 2025 regarding the phased introduction of mandatory e-invoicing and digital bookkeeping.

Mozambique
Mozambique reinstated VAT exemptions on soap, sugar, cooking oil, and related raw materials from 30 May to 31 December 2025 to support local production and affordability.

Malaysia
Malaysia expanded its service tax scope and increased sales tax on luxury items such as imported fruits, racing bicycles, and antique art.

Bhutan
Bhutan will replace its Sales Tax and Excise Tax with a unified 5% GST.

Ethiopia
Ethiopia delayed VAT registration and collection obligations for foreign providers of B2C digital services.

Romania
Romania will raise its standard VAT rate from 19% to 21% effective 1 August 2025, expecting to generate €1.2 billion annually.

Tanzania
Tanzania expanded the definition of online intermediation services in its 2025 budget to include marketplaces and network marketing platforms.

Slovakia
Slovakia introduced deferred import VAT for resident businesses from 1 July 2025 and will extend it to non-residents from 1 January 2026.

Saudi Arabia
Saudi taxpayers with turnover exceeding SAR 2.5 million in 2022 or 2023 must comply with Phase 2 e-invoicing rules by 31 July 2025.

Canada
Canada announced it will withdraw its planned 3% digital services tax.

Moldova
Moldova confirmed a phased e-invoicing rollout starting with documentation in 2025, a pilot in January 2026, and full implementation by October 2026.