This Newsletter covering the news, developments, updates etc of week 30 and 31 of 2025 (July 21 – Aug 3, 2025) includes:
- News per region than by country
- Specific section on E-Invoicing, E-Reporting etc per country
- Specific section on VAT rates
- Specific section on ECJ Cases
- ALL links can be found at the bottom, ranked per country
Audio version on Spotify
Video
The global landscape of indirect taxation is undergoing a significant transformation marked by the widespread adoption of VAT/GST systems and the increasing digitalization of tax compliance, including mandates for real-time or near real-time reporting of transactions. Countries are implementing these reforms to combat tax fraud and evasion, increase state revenue, streamline compliance, and modernize tax systems. Technology, particularly e-invoicing and Continuous Transaction Controls (CTCs), is fundamentally reshaping tax administration to improve data accuracy and combat evasion.
Here is an overview of global indirect taxation trends, challenges, and compliance, ranked by region and then by country:
European Union (EU) and Europe
The European Union plays a critical role in shaping VAT and e-invoicing policies through directives and court rulings. Initiatives like ViDA (VAT in the Digital Age) aim to reduce the VAT gap and modernize VAT reporting. EU e-commerce VAT reforms, including the Import One Stop Shop (IOSS) system, have yielded over €33 billion in 2024, boosting compliance and fair taxation by simplifying VAT obligations for cross-border e-commerce. The EU is also considering changes for the tourism and transport sectors. European Court of Justice (ECJ/CJEU) rulings frequently clarify concepts like “fixed establishment” and the “reverse charge mechanism,” influencing national tax administrations. Ongoing discussions include the VAT implications of transfer pricing adjustments and digital assets.
- Austria: Implemented 0% VAT on feminine hygiene products and contraceptives starting in 2026. The country is also undertaking tax reforms to boost SME growth and economic competitiveness.
- Belgium: Is mandating B2B e-invoicing by January 2026, with near real-time reporting to follow by 2028, primarily using the PEPPOL network. A recent ruling confirmed Cabot Plastics has no fixed establishment in Belgium.
- Bulgaria: Is implementing SAF-T for large enterprises starting January 2026 to facilitate tax audits and data analysis.
- Croatia: Mandates e-invoicing for VAT businesses by 2026 under its “Fiscalization 2.0 Reform”.
- Cyprus: The EU has initiated an infringement procedure against Cyprus for incomplete VAT Directive transposition.
- Czech Republic: Has changes in real estate VAT effective from July 2025 and new VAT repayment rules for unpaid invoices from January 2025.
- Denmark: Has released a draft SAF-T 2.0 for enhanced tax reporting.
- Estonia: Uncertainty surrounds the effectiveness of VAT reduction on food prices.
- France: Implemented a Digital Services Tax (DST). France’s B2B e-invoicing mandate is a digital transition aimed at streamlining processes by 2027, without fundamentally changing invoicing rules. Its public sector will implement mandatory e-invoicing via the Chorus Pro portal by September 2026.
- Germany: Is consolidating e-invoicing platforms and mandating electronic invoices for VAT businesses by 2027, emphasizing XML archiving. The country also approved a 7% reduced VAT for hospitality food sales starting January 2026.
- Greece: Has enacted a mandatory B2B e-invoicing law for domestic and international transactions, effective July 2025.
- Ireland: Issued VAT guidance for social media influencers on income and compliance, highlighting challenges in understanding obligations.
- Italy: Is facing a €1 Billion VAT claim from Meta, X, and LinkedIn over VAT on free user signups. Italy has also approved a new Consolidated VAT Law aligned with EU directives.
- Latvia: Has delayed mandatory B2B e-invoicing until 2028.
- Lithuania: Is adjusting VAT rates for tourism, transport, culture, and publishing by 2026.
- Moldova: Has exempted forest services from VAT and expanded its list of goods eligible for reduced VAT rates.
- Netherlands: Has various court rulings concerning VAT exemptions for services and property rentals, and there are calls to reconsider VAT increases on accommodations to protect tourism.
- Poland: Parliament approved a mandatory National E-invoicing System (KSeF) starting February 1, 2026. Poland also raised its VAT exemption threshold to PLN 240,000 in 2026.
- Portugal: Extended its May VAT declaration deadline due to software issues.
- Romania: Is increasing its standard VAT rate to 21% and consolidating reduced rates to a unified 11% as of August 2025. The EU Prosecutor has criticized Romania for failing to address VAT fraud.
- Slovakia: Proposes mandatory e-invoicing for B2B VAT transactions starting January 2027, aligning with EU ViDA.
- Slovenia: Has delayed mandatory B2B e-invoicing to 2027 but is mandating digital VAT ledger submissions for all businesses starting July 2025.
- Spain: Proposes a 21% VAT on short-term tourist rentals, ending the current exemption. Spain is also launching inspection campaigns for VeriFactu compliance.
- Sweden: Is preparing for the ViDA Directive with a national inquiry on digital VAT reporting and e-invoicing.
- Ukraine: Is testing SAF-T UA and has VAT exemptions for defense goods during martial law.
- United Kingdom: The Supreme Court ruled against Uber’s VAT bid, exempting private hire operators from 20% VAT outside London. HMRC is transforming to a “Digital-First Tax Transformation” by 2030.
II. Asia-Pacific
This region shows significant movement towards e-invoicing and measures to capture revenue from the digital economy.
- Australia: The ATO is cracking down on GST refund fraud in the property and construction industry and overhauling its system to prevent false claims. Australia also mandates e-invoicing for Commonwealth entities.
- Bhutan: Is set to implement a 5% GST in January 2026, ending sales tax exemptions.
- China: Is modernizing tax compliance with a new VAT law by 2026.
- Fiji: Is reducing its VAT rate to 12.5% starting August 1, 2025, with monitoring efforts to ensure fair pricing.
- India: Is considering a uniform 12% GST for the textile sector to simplify the tax structure and faces Supreme Court decisions on GST for online gaming and flavored milk.
- Indonesia: Has increased its crypto tax to 0.21% and exempted VAT on assets, effective August 1, and revamped its VAT system for cross-border digital services.
- Japan: The government deems a sales tax cut inappropriate despite political discussions.
- Kazakhstan: Will subject bank transfers to VAT from 2026 and has introduced a 12% VAT for ChatGPT subscriptions starting August 2025 as part of new tax code changes.
- Malaysia: Is implementing nationwide e-invoicing for enhanced tax compliance, with mandatory rollout starting in 2026.
- New Zealand: Inland Revenue has clarified GST deductions and rules for listed services in electronic marketplaces.
- Pakistan: Is extending sales tax e-invoicing integration deadlines and has exempted Google from a new digital tax. The country also plans for tax registered sellers to operate in e-commerce.
- Philippines: Is navigating VAT compliance for registered business enterprises under the CREATE MORE Law.
- Singapore: Is enhancing its InvoiceNow system to streamline procurement processes by 2025.
- Sri Lanka: Is accelerating tax digitalization and plans to impose an 18% VAT on PayPal and Stripe.
- Taiwan: Businesses affected by US tariff policies can apply for business tax refunds.
- Vietnam: Has extended the 8% VAT rate and adjusted the 2% reduction scope until December 2026, and introduced a new VAT withholding mechanism for e-commerce sellers effective July 2025.
III. North America
Sales tax complexity remains a key characteristic in the United States, while Canada continues to clarify its GST/HST rules.
- Canada: Is clarifying GST/HST application on warranty supplies and no-show fees. An agreement with the EU simplifies and strengthens customs cooperation.
- United States: Is experiencing growing sales tax complexity with over 400 changes reported in 2025. Several states are introducing Sales Tax Holidays, with Florida making its back-to-school sales tax holiday permanent. The US is also imposing additional tariffs on imports from trading partners and ended duty-free status for low-value packages.
IV. South America
Several countries are undergoing significant tax reforms, including digitalization and efforts to align with international standards.
- Argentina: Has introduced a simple VAT system to streamline tax return submissions and is advancing a 50% VAT reduction to address currency disparity.
- Brazil: Is undergoing a 2027 tax reform aimed at aligning with global standards and introducing a split payment model for non-cumulative taxation. A new bill also proposes a 7% levy on major digital platforms’ revenue.
- Chile: Is implementing new VAT rules for non-resident e-commerce sellers and digital platforms, requiring mandatory VAT registration for foreign B2C sellers starting October 2025.
- Colombia: Has proposed tax reforms including VAT exemptions and vehicle tax discounts.
- Costa Rica: Is transitioning to a new digital tax system, TRIBU-CR, by August 2025 and mandates electronic invoicing format 4.4 from September 2025.
- Dominica: Has cut VAT and import duties on essential foods to ease living costs.
- Ecuador: Has reduced taxes on electric vehicles and eased VAT rules for the tourism sector.
- Paraguay: Is rolling out an e-invoicing schedule for new taxpayer groups.
- Venezuela: Is broadening VAT withholding rules and has exempted customs duties and VAT on imports until June 2026.
V. Africa
Digitalization of tax compliance and revenue generation are key themes across the continent.
- Albania: Has clarified invoice exemptions for street vendors and VAT rules for service exports.
- Algeria: Established reporting requirements for data on physical goods production.
- Anguilla: Cut Port GST to 9% to stimulate economic growth.
- Botswana: Is set to implement mandatory e-invoicing for VAT in 2025 to enhance compliance.
- Egypt: Is amending its VAT Law with new rates and exemptions effective July 2025, expanding VAT to boost revenue.
- Ethiopia: Released VAT guidelines for foreign digital services providers.
- Ivory Coast: Launched an e-invoicing system to combat tax evasion and boost revenue.
- Kenya: Has mandated electronic invoicing (TIMS and KRA) and proposes automated VAT collection from mobile money transactions.
- Malawi: Has exempted bread from VAT under new tax laws effective April 2025.
- Mauritius: Its National Assembly is considering the introduction of VAT on nonresident digital services.
- Mozambique: Reintroduced VAT exemption for sugar, cooking oil, and soap until December 2025.
- Nigeria: Is introducing mandatory e-invoicing for large taxpayers from August 2025. The Federal Inland Revenue Service (FIRS) also has authority to collect VAT on food and transport services via platforms.
- South Africa: SARS is increasing VAT estimated assessments due to enhanced tax collection efforts.
- Uganda: Is revising its VAT and digital tax rules for 2025.
- Zambia: The Revenue Authority suspended withholding VAT due to the successful implementation of its smart invoice system.
VI. Middle East
This region is actively embracing e-invoicing and adapting tax regulations for the digital age.
- Bahrain: Has released new VAT guidelines for owners’ associations.
- Oman: Plans to implement an e-invoicing system by 2028, following the PEPPOL model.
- Saudi Arabia: Extended e-invoicing penalty relief until the end of 2025 and launched Wave 23 of its integration process.
- Turkey: Is proposing amendments to VAT refunds, exemptions, and procedures. The country has also implemented new special consumption tax on passenger vehicles.
- United Arab Emirates (UAE): Is announcing a PEPPOL-based e-invoicing framework with a mandate by July 2026 and has announced significant tax refunds for nationals constructing new homes.
- This overview highlights the global push towards modernizing tax systems, driven by digitalization, and the varied approaches countries are taking to adapt their indirect taxation frameworks to evolving economic realities.
News related to E-Invoicing, E-Reporting, SAF-T, ViDA, and E-Transport, drawing on the provided sources:
Global Indirect Taxation Digitalization News by Country
• Albania
◦ The Albanian Tax Administration clarifies invoice exemption for legally registered street vendors.
• Algeria
◦ Algeria has established reporting requirements for data on physical goods production.
• Argentina
◦ Argentina is introducing a Simple VAT System aimed at streamlining and simplifying tax return submissions.
• Australia
◦ Australia mandates e-invoicing for Commonwealth entities.
◦ The ATO is pledging a system overhaul after a $2 billion GST fraud was exposed, highlighting the need for action to prevent false claims. The ATO is also cracking down on GST fraud in the property and construction industry.
• Belgium
◦ Belgium is mandating B2B e-invoicing by January 2026.
◦ The country has confirmed a PEPPOL e-invoicing mandate with near real-time reporting to follow by 2028.
◦ New Royal Decrees clarify e-invoicing obligations effective January 2026.
◦ Penalties for non-compliance with mandatory e-invoicing are set to begin in 2026.
◦ Efforts are underway to make e-invoicing effortless for Belgian freelancers to comply with 2026 regulations using eFactuurHub.
• Bosnia and Herzegovina
◦ The Tax Authority has published a new technical guide for electronic fiscal device issuance.
• Botswana
◦ Botswana is set to implement mandatory e-invoicing for VAT in 2025 to enhance compliance. A guide for business preparation for Botswana’s 2026 e-Invoicing Mandate is also available.
• Brazil
◦ Brazil’s 2027 tax reform aims to align with global standards and introduce a split payment model for non-cumulative taxation.
◦ The country has updated its EFD System FAQs to include CBS, IBS, and IS recording requirements.
• Bulgaria
◦ Bulgaria is scheduled to implement SAF-T (Standard Audit File for Tax) for large enterprises starting January 1, 2026, following pilot testing.
◦ The NRA has issued a new SAF-T Order for tax data submission starting 2026.
• Cambodia
◦ Cambodia is expanding mandatory e-invoicing to six ministries under Phases 1 and 2 by 2025.
• Chile
◦ Chile is implementing new VAT rules for non-resident e-commerce and digital platforms in 2025.
◦ Regulations for simplified VAT registration for digital platforms have been issued.
◦ Chile has mandated VAT registration for foreign B2C sellers and platforms starting October 2025.
◦ The country has established e-invoicing regulations covering overview, compliance, and key requirements for businesses.
• China
◦ China’s new VAT Law aims to modernize tax compliance and align with global standards by 2026.
• Costa Rica
◦ Costa Rica has announced a transition to a new digital tax system, TRIBU-CR, effective August 2025, which will replace existing platforms.
◦ The country mandates Electronic Invoicing Format 4.4 starting September 2025 for tax compliance.
• Croatia
◦ Croatia is mandating e-invoicing for domestic B2B transactions starting January 2026.
◦ This is part of the Fiscalization 2.0 Reform, under which e-invoicing is mandated for VAT businesses by 2026.
◦ Croatia updates its e-invoicing rules to comply with EU standards and national specifications.
◦ Major changes for B2C transactions are effective 2025-2026 under the Fiscalization reform.
• Denmark
◦ Denmark has released a Draft SAF-T 2.0 for enhanced tax reporting and data exchange feedback.
◦ Denmark is part of the trend of rising e-invoicing mandates in Scandinavia.
• European Union (EU)
◦ The EU is pushing for a harmonized e-invoicing framework, such as the ViDA (VAT in the Digital Age) initiative, to reduce the VAT gap and modernize VAT reporting.
◦ The EU Commission is proposing harmonized e-invoicing across the EU, aiming for adoption before the 2030 VAT deadline.
◦ There is an overview of e-invoicing and e-reporting developments in the EU.
◦ The EU promotes systems like the Import One Stop Shop (IOSS) to simplify VAT obligations for e-commerce, allowing suppliers selling imported goods to buyers in the EU to collect, declare, and pay VAT to tax authorities in a single EU member state.
◦ The EU VAT Committee is updating e-invoicing rules.
◦ EU VAT reforms for e-commerce have yielded over €33 billion in 2024, boosting compliance and fair taxation.
◦ The ViDA update indicates that e-invoicing mandates may exclude non-residents.
• France
◦ France’s e-invoicing mandate is a digital transition aimed at streamlining processes without fundamentally changing invoicing rules by 2027.
◦ The country’s public sector will implement mandatory e-invoicing via the Chorus Pro portal by September 2026.
◦ Chorus Pro will remain the B2G e-invoicing framework in France.
• Germany
◦ Germany is planning to consolidate e-invoicing platforms and mandate electronic invoices for VAT businesses by 2027, with an emphasis on XML archiving over PDFs.
◦ Drafts for clarification and amendments to the VAT Application Decree for e-invoicing have been published.
◦ Germany’s e-invoicing transition includes key dates, compliance, and preparation for businesses by 2028.
◦ A webinar discusses Germany’s fiscalization, including its legal framework, obligations, and deadlines.
• Greece
◦ Greece has enacted a mandatory B2B e-invoicing law for domestic and international transactions, effective July 2025.
◦ The country is introducing mandatory e-invoicing to align with EU VAT digitization efforts.
◦ Greece has also issued 2025 e-transport rules, including penalties, exemptions, and compliance strategies for businesses.
◦ The deadline for non-procurement e-invoicing has been extended to September 2025.
• Indonesia
◦ Indonesia has revamped its VAT system for cross-border digital services, introducing new VAT requirements for crypto assets and increasing the crypto tax to 0.21%, effective August 1.
◦ A new regulation establishes the VAT system for cross-border digital transactions.
• Ivory Coast
◦ Ivory Coast has launched an e-invoicing system to combat tax evasion and boost revenue.
• Kenya
◦ Kenya is implementing mandatory electronic invoicing with TIMS and KRA requirements.
◦ KRA proposes automated VAT collection from mobile money transactions to enhance tax compliance.
• Latvia
◦ Latvia has delayed mandatory B2B e-invoicing to 2028, extending the transition period for businesses.
• Lithuania
◦ Lithuania is undertaking the implementation of e-invoicing, with timelines, guidelines, processes, and steps outlined.
◦ The country is also addressing fiscalization and VAT treatment for EV chargers.
• Malaysia
◦ Malaysia is implementing nationwide e-invoicing for enhanced tax compliance, with a mandatory rollout starting in 2026.
◦ Updated guidelines and FAQs for the mandatory e-invoicing rollout have been issued.
◦ British American Tobacco (BAT) Malaysia successfully implemented e-invoicing with RTC Suite.
• Nigeria
◦ Nigeria is introducing mandatory e-invoicing for large taxpayers from August 2025.
◦ The FIRS (Federal Inland Revenue Service) mandates banks and fintechs to share data for real-time VAT monitoring.
◦ Courts have upheld FIRS’ authority to collect VAT on food and transport services via platforms.
• Norway
◦ Norway plans mandatory digital bookkeeping and e-invoicing for businesses by 2030, with a public consultation currently open.
◦ Norway is part of the trend of rising e-invoicing mandates in Scandinavia.
• Oman
◦ Oman is set to implement an e-invoicing system by 2028, following the PEPPOL model for digital transformation.
• Pakistan
◦ The FBR (Federal Board of Revenue) has extended the sales tax e-invoicing integration deadline and set new e-invoice integration deadlines for taxpayers by 2025.
◦ The Prime Minister has approved an FBR digital system for comprehensive value chain monitoring and tax reform.
• Paraguay
◦ Paraguay is rolling out an e-invoicing schedule for new taxpayer groups.
• Poland
◦ Parliament has approved the mandatory National E-invoicing System (KSeF) starting February 1, 2026.
◦ Lawmakers have approved changes to the e-invoice system.
◦ Poland is simplifying e-invoicing with a new VAT bill and updated technical documentation.
◦ Preparation for mandatory e-invoicing in KSeF by February 2026 is advised.
◦ There have been criticisms regarding delayed e-invoicing and ineffective tax controls from NIK against the Ministry of Finance’s performance.
• Romania
◦ Romania is implementing mandatory e-TVA, with automated solutions helping taxpayers comply faster.
◦ Customs introduces new electronic systems for declaring goods from August 1.
• Saudi Arabia
◦ Saudi Arabia has extended e-invoicing penalty relief until the end of 2025 and launched Wave 23 of integration.
◦ Guidance for understanding Saudi Arabia’s e-invoicing regulations is available.
• Serbia
◦ Serbia mandates electronic delivery notes for goods transport starting 2026.
◦ The Ministry of Finance has suspended penalties on incorrect VAT reporting in SEF (electronic invoicing system).
◦ Webinars are held to address user questions on the VAT Summary Records Module in the e-invoice system.
• Singapore
◦ Singapore is enhancing its InvoiceNow system with advanced ordering to streamline procurement processes by 2025.
• Slovakia
◦ Slovakia proposes mandatory e-invoicing for B2B VAT transactions starting January 2027, aligning with the EU ViDA initiative.
◦ A public consultation is open on 2027 e-invoicing and e-reporting reforms for businesses.
• Slovenia
◦ Slovenia has delayed mandatory B2B e-invoicing to 2027 and introduced stricter provider standards.
◦ FURS (Financial Administration of the Republic of Slovenia) has announced a new eDavki system for VAT records submission starting August 1, 2025.
◦ Slovenia mandates digital VAT ledger submissions for all businesses starting July 2025.
• Spain
◦ The Spanish Tax Agency is launching an inspection campaign for VeriFactu compliance in invoicing software.
◦ eInvoicing is present in Spain.
• Sri Lanka
◦ Sri Lanka is accelerating tax digitalization as part of its 2030 digital economy vision, with the President directing the digitalization of the Inland Revenue Department.
• Sweden
◦ Sweden is preparing for the ViDA Directive with a national inquiry on digital VAT reporting and e-invoicing.
◦ Sweden is part of the trend of rising e-invoicing mandates in Scandinavia.
• Turkey
◦ Turkey’s digital tax compliance includes e-invoicing, e-ledger, and e-delivery regulations.
◦ The GİB (Revenue Administration) has updated its invoicing guide, setting new deadlines for medicines and medical devices.
◦ Turkey has extended the e-invoice deadline for medication and medical devices to October 2025.
• Uganda
◦ Uganda has revised its VAT and digital tax rules for 2025.
• Ukraine
◦ The Ukrainian Tax Service is testing SAF-T UA with files submitted by companies.
• United Arab Emirates (UAE)
◦ The UAE is announcing a PEPPOL-based e-invoicing framework with a mandate by July 2026.
◦ Resources are available to help prepare for the 2026 e-invoicing mandate.
◦ The UAE e-invoicing system aims to simplify tax reporting and invoice exchange by July 2026.
• United Kingdom
◦ HMRC (His Majesty’s Revenue and Customs) is transforming to a “Digital-First Tax Transformation” by 2030.
◦ The UK has a strategic approach to e-invoicing, balancing global trends and local needs.
◦ The tax authority is expanding the use of artificial intelligence to support tax compliance.
• United States
◦ Sales tax complexity in the U.S. is growing, with over 400 changes reported in the 2025 Mid-Year Report.
◦ Discussions are ongoing regarding navigating expanded sales tax for digital goods and services in 2025.
• Venezuela
◦ Venezuela broadens VAT withholding rules for individuals with personal businesses.
• Vietnam
◦ Vietnam is implementing a new VAT withholding and payment mechanism for e-commerce sellers effective July 2025.
• Zambia
◦ The Zambia Revenue Authority has suspended withholding VAT due to the successful implementation of its Smart Invoice System
VAT Rates
The sources provide extensive information on Value Added Tax (VAT) and Goods and Services Tax (GST) rate changes, exemptions, and special treatments across numerous countries. These changes are often driven by economic stimulus, social welfare, or revenue generation.
Here is a summary of the news related to VAT/GST rates per country:
Countries Increasing VAT/GST Rates or Expanding Taxation Scope
- Egypt: The VAT Law has been amended, introducing new rates and exemptions effective July 18, 2025. Egypt is expanding VAT to boost revenue, specifically targeting cigarettes and alcohol.
- Kazakhstan: Under the new Tax Code, bank transfers will be subject to VAT from 2026, and Kazakhs will pay 12% VAT for ChatGPT subscriptions starting August 1, 2025. There will be a general VAT increase alongside sector-specific exemptions.
- Netherlands: The Zandvoort municipality is urging the Dutch Parliament to reconsider a VAT increase on accommodations to protect the tourism industry.
- Romania: As of August 2025, Romania is increasing its standard VAT rate to 21% and consolidating reduced rates to a unified 11%. Additionally, the VAT exemption for NGOs will end.
- Spain: Spain proposes a 21% VAT on short-term tourist rentals, which would end the current exemption.
- Turkey: The Parliament has approved a new law making changes in VAT and Special Consumption Tax (ÖTV) rates for automobiles, and Turkiye has increased ÖTV rates for electrical vehicles.
- Uganda: Uganda is revising its VAT and Digital Tax Rules for 2025.
Countries Decreasing VAT/GST Rates or Introducing Exemptions/Reductions
- Anguilla: The Premier is cutting the Port GST to 9% to stimulate economic growth.
- Argentina: Parliament is advancing a 50% VAT reduction to address currency disparity with Brazil and Argentina.
- Austria: Feminine hygiene products and contraceptives will have 0% VAT starting 2026.
- Bhutan: Bhutan will implement a 5% GST in January 2026, which will end existing sales tax exemptions.
- Bosnia and Herzegovina: The Upper House has proposed zero VAT rate legislation.
- Chile: The Chilean Chamber is considering a bill for tax amendments benefiting the middle-class and SMEs with VAT reductions.
- Colombia: Bill 507 proposes tax reforms, including VAT exemptions.
- Dominica: Dominica is cutting VAT and import duties on essential foods to ease living costs.
- Ecuador: Ecuador is reducing taxes on electric vehicles and easing VAT rules for the tourism sector.
- Estonia: There is an ongoing debate about the effectiveness of a VAT reduction on food prices.
- Fiji: Fiji is set to reduce its VAT rate to 12.5% starting August 1, 2025, with previous reports indicating a 2.5% cut.
- France: France has introduced differentiated VAT exemptions for its Overseas Departments and is revising these exemption lists.
- Germany: The German Coalition Government has approved a 7% reduced VAT for hospitality food sales starting January 2026. There is also a reduced tax rate on wood chips as firewood, and a VAT exemption for substitute emergency medical services.
- Guyana: The 2025 budget removed VAT on agricultural machinery, poultry pens, veterinary supplies, and generators.
- India: India is considering a uniform 12% GST for the textile sector and the Supreme Court upheld a 5% GST on flavoured milk, rejecting a plea for 12%.
- Indonesia: Indonesia increased the crypto tax to 0.21% but exempted VAT on the assets themselves effective August 1. The government is also offering a VAT incentive for economy-class flights to boost the economy.
- Ireland: The government is delaying a VAT cut for hospitality until mid-2026 and excluding accommodation from the 9% rate.
- Kazakhstan: The new Tax Code includes medical exemptions and reduced rates effective 2026, and the list of VAT-exempt religious items has been updated.
- Kyrgyzstan: The government has revised and announced a new list of VAT-exempt goods, including for renewable energy equipment.
- Lithuania: Lithuania plans to adjust VAT rates for tourism, transport, culture, and publishing by 2026.
- Malawi: Malawi has exempted bread from VAT under new tax laws effective April 2025.
- Moldova: Moldova has enacted a law that exempts forest services from VAT and has expanded the list of goods eligible for a reduced VAT rate.
- Mozambique: Mozambique has reintroduced a VAT exemption for sugar, cooking oil, and soap until December 31, 2025.
- Poland: Poland is raising its VAT exemption threshold to PLN 240,000 effective January 2026.
- Russia: Russia is proposing a VAT reduction on essential food items to combat inflation and boost purchasing power. They are also proposing and have approved zero VAT for lightweight drones until 2027 and have extended the zero VAT rate for hotels until the end of 2030.
- Saint Kitts and Nevis: There will be discounted VAT days on back-to-school essentials on August 15-16, 2025.
- South Africa: SABC is seeking a VAT exemption on TV licenses to boost its financial stability.
- South Korea: South Korea is considering ending VAT refunds for foreign cosmetic surgery patients to ensure fair tax policy.
- Spain: The Spanish Supreme Court ruled that reduced VAT for home repairs only applies to direct homeowner-contractor agreements, and Spain has clarified VAT rates for solar panel installations on residential properties.
- Taiwan: Businesses eligible for a zero tax rate can apply for monthly tax filing.
- Ukraine: VAT exemption applies to defense goods during martial law. However, VAT exemption is not applicable for energy goods supply in Ukraine’s customs territory.
- United Kingdom: The Supreme Court ruled against Uber’s VAT bid, exempting private hire operators from 20% VAT outside London.
- United States: Florida has made its back-to-school sales tax holiday permanent and is abolishing state sales tax on commercial rent effective October 2025. Ohio is also offering an expanded sales tax holiday. The U.S. sales tax complexity continues to grow with “Over 400 Changes in 2025 Mid-Year Report”.
- Venezuela: Venezuela is exempting customs duties and VAT on imports until June 2026.
- Vietnam: Breeding animals and plants are exempt from VAT. Vietnam has also extended its 8% VAT rate and adjusted its 2% reduction scope until December 2026.
- Zambia: The Zambia Revenue Authority is considering the future abolishment of withholding VAT after its current suspension due to the successful implementation of the Smart Invoice System.
ECJ Cases
The sources provide several news items related to European Court of Justice (ECJ) and Court of Justice of the European Union (CJEU) cases, which play a critical role in interpreting and applying VAT law across EU member states. These rulings significantly influence how national tax administrations implement VAT law.
Recent Judgments and Orders:
◦ ECJ C-794/23 (Finanzamt Österreich): A judgment states that a taxpayer is not liable for incorrectly charged VAT to non-taxables. This ruling is also associated with the “EU Court Rules on VAT Overcharge: Simplified Invoicing and Taxpayer Rights in Austria Case”.
◦ ECJ C-427/23 (Határ Diszkont): A judgment confirms that managing VAT refund files is an independent supply subject to VAT, not exempted from VAT. This case specifically addresses “VAT Refunds for Non-EU Customers: Taxable Services or Exempt?”.
◦ ECJ C-433/24 (Galerie Karsten Greve): A judgment clarifies that Article 316(1)(b) allows for the supply of art by dealers via legal entities if properly attributed.
◦ ECJ C-602/24 (W.): A judgment addresses the exemption for Intra-Community supplies even if goods are exported.
Here are the news items related to ECJ/CJEU VAT cases, grouped by case number where available:
I. General ECJ/CJEU Rulings and Mentions (without specific case numbers):
- The ECJ/CJEU frequently clarifies concepts such as “fixed establishment” and the “reverse charge mechanism,” which are crucial for the application of VAT law.
- There are general discussions and roadmaps focusing on ECJ cases concerning:
- “Exemption – Financial transactions” (including deposit and current accounts, payments, transfers, debts, cheques).
- “Free Products” (Art. 16 of VAT Directive).
- “TOMS” (Travel Operating Margin Scheme) (Art. 306-310).
- “Exemption on Importation” (Art. 143).
- The “Right to Deduct VAT” and the “Substance over form” concept.
- The EU Court has ruled on limiting automatic VAT deregistration by tax authorities in Member States.
- The CJEU has ruled on the valuation of holding company services in the Högkullen VAT Case.
- The ECJ’s case law is highlighted as a frequently “overlooked source in VAT Advisory”.
- The agenda for ECJ VAT cases includes four judgments scheduled for August 1, 2025.
- There are lists of ECJ VAT cases decided in 2025 and pending cases.
- The EU VAT Committee addresses various topics influenced by ECJ rulings, including digital assets and e-invoicing rules.
- A ruling by the EU Court addresses VAT overcharge, simplified invoicing, and taxpayer rights in an Austria case, likely relating to ECJ C-794/23.
II. Specific ECJ/CJEU Cases (Ranked by Case Number):
• ECJ C-245/04 (EMAG Handel Eder OHG)
◦ A briefing document and podcast discuss the VAT implications of Intra-Community Chain Transactions.
• ECJ C-605/12 (Welmory)
◦ A briefing document and podcast clarify the concept of “Fixed Establishment” in VAT. This specific ruling is an example of how the ECJ clarifies concepts that influence national tax administrations.
• ECJ C-628/16 (Kreuzmayr)
◦ A briefing document and podcast discuss successive supplies and the right to deduct VAT.
• ECJ C-516/14 (Barlis)
◦ A briefing document and podcast indicate that VAT deduction should not be refused solely based on formal invoice defects.
• ECJ C-108/22
◦ A briefing document and podcast cover VAT for Accommodation Consolidators under the Special Travel Agent Scheme.
• ECJ C-207/23 (Finanzamt X)
◦ A briefing document and podcast discuss the VAT implications of free-of-charge supplies of heat.
• ECJ C-427/23 (Two distinct topics are associated with this case number in the sources):
◦ A briefing document and podcast discuss VAT Refunds for Non-EU Customers: whether they are Taxable Services or Exempt?.
◦ A judgment related to Hungary (Határ Diszkont) confirms that managing VAT refund files is an independent supply subject to VAT, not exempted from VAT.
• ECJ C-726/23
◦ This CJEU case is exploring whether Transfer Pricing Adjustments Are Considered VAT Liable.
◦ The Advocate General’s (AG) Opinion suggests that TP Adjustments May Impact VAT, necessitating a case-by-case assessment. This case is part of ongoing discussions on the impact of transfer pricing on VAT liabilities and reporting challenges.
• ECJ C-125/24 (Palmstråle)
◦ Comments on this case indicate that a breach of customs formalities does not prevent VAT exemption.
• ECJ C-232/24
◦ The Advocate General’s (AG) Opinion concerns VAT for Factoring and Arrangement Fees.
• ECJ C-433/24 (Galerie Karsten Greve)
◦ A judgment clarifies that Article 316(1)(b) allows for the supply of art by dealers via legal entities if properly attributed.
• ECJ C-744/23
◦ The Advocate General’s (AG) Opinion addresses the Taxability of No-Win No-Fee Lawyer Payments.
• ECJ C-794/23 (Finanzamt Österreich)
◦ A judgment states that a taxpayer is not liable for incorrectly charged VAT to non-taxables. This aligns with the “EU Court Rules on VAT Overcharge: Simplified Invoicing and Taxpayer Rights in Austria Case”.
• General Court VAT Case T-397/25 (A&P Deco)
◦ Questions have been raised regarding whether VAT adjustments should apply when immovable property is leased after a business transfer.
• ECJ C-280/25 (Lin II)
◦ This case involves an Order where Romania’s High Court is seeking an EU ruling on tax evasion and fraud seriousness criteria.
• ECJ C-465/25 (Matin Maier)
◦ This is identified as a new ECJ VAT case where details are not yet known.
• ECJ C-602/24 (W.)
◦ A judgment addresses the exemption for Intra-Community supplies even if goods are exported.
