Global Tax Updates January 2026: Key Rate Changes, E-Invoicing, and Regulatory Reforms Worldwide

UK: HMRC revised VAT grouping policy to include overseas establishments, easing cross-border VAT and enabling VAT reclaims.
Germany: Draft amendment proposes permanent 7% reduced VAT rate for hospitality food sales.
Denmark: Digital Bookkeeping Act fully implemented, mandating electronic accounting for 118,000+ businesses from January 2026.
China: Temporary tax incentives introduced to support domestic CDR issuance pilot program.
Canada: Manitoba expands retail sales tax to cloud computing services from January 2026, aiming to raise CAD 16 million annually.
New Zealand: Mandatory B2G e-invoicing phased in from January 2026 (government) to January 2027 (large suppliers).
Brazil: Pilot phase of new VAT system (CBS at 0.9%, IBS at 0.1%) launched, with offsetting allowed against existing taxes.
Croatia: Mandatory B2G and B2B e-invoicing for resident businesses; non-VAT registered businesses must accept e-invoices.
UAE: Reverse charge on VAT for scrap-metal supplies between VAT-registered businesses from 14th January.
Bhutan: 5% Goods and Services Tax introduced, replacing Sales and Excise Tax.
Zimbabwe: Standard VAT rate increased from 15% to 15.5% from 1st January.
Saudi Arabia: Marketplaces now responsible for non-resident digital services VAT from January 2026.
Lithuania: Reduced VAT rate raised from 9% to 12% effective 1st January 2026.