Bangladesh
- The NBR plans to launch a QR code system on packaged goods starting with tobacco to curb VAT evasion, improve retail monitoring, reward whistleblowers, and impose fines on offenders. 🔗
- Bangladesh’s National Board of Revenue plans to replace sector-specific VAT exemptions with a uniform 15% VAT rate across all sectors while maintaining strict collection of advance income tax at import. 🔗
Cambodia will cut VAT on gasoline and diesel from 10% to 4% starting March 20, 2026 to ease the tax burden on petroleum products, with guidance issued for invoicing, tax calculation, and e-filing. 🔗 🔗
China
- Pingtan’s “second line” VAT and consumption tax rebate program has expanded eligibility by optimizing the negative list and adding rebates for certain food products, microcomputer equipment parts, and highway tractors to attract food processing, digital economy, and cultural tourism industries. 🔗
- China’s circular-invoice crackdown has disrupted Shanghai trading of copper, aluminium, and silver by slashing firms’ invoicing quotas, slowing spot activity, and raising concerns that legitimate trades and real metal flows are being hit. 🔗 🔗
- China has reported a sharp rise in VAT refund transactions for departing tourists after rolling out a nationwide policy that provides instant tax refunds at the time of purchase; the instant VAT refund service began one year ago. 🔗
India
- The Supreme Court held that VAT classification cannot be determined by food-law or licensing labels; instead, it must be based on commercial understanding and the product’s essential character. Applying this, it ruled “Sharbat Rooh Afza” should be taxed as a fruit-based drink under the relevant 4% VAT category, not by regulatory designations or its composition details. 🔗
- The Bombay High Court held that GST does not apply to a complete assignment of leasehold rights because it extinguishes the transferor’s rights and constitutes a sale rather than a service supplied in the course of business. 🔗
Indonesia
- Indonesia’s Ministry of Finance (Regulation No. 24/2026) provides a 100% government-borne VAT incentive for domestic commercial air travel in 2026 on eligible fares and fuel surcharges, with specific invoicing and reporting requirements for airlines. 🔗 🔗
- Indonesia’s proposed VAT on toll road services is expected to yield only modest revenue gains but could raise logistics costs, fuel inflation, and weaken national competitiveness—while advancing with limited public and political debate. 🔗
Japan is considering applying a 1% consumption tax on food and beverages instead of the promised 0% because updating POS and cash register systems would take about three months for 1% but about a year for 0%, creating implementation and error risks and prompting debate within the government. 🔗
Malaysia’s Royal Malaysian Customs Department issued Public Ruling No. 1/2026, effective 31 March 2026, requiring consistent use of approved exchange rate sources when issuing foreign-currency sales and service tax invoices, with approvals needed for unlisted sources and penalties for noncompliance. 🔗
New Zealand Inland Revenue has issued draft guidance for consultation on applying a reduced GST rate (effective 9%) to commercial dwelling stays longer than four weeks, including an early application option for certain “residential establishments,” while clarifying related rules such as exclusions for supplies via electronic marketplaces. 🔗
Philippines
- The BIR’s RMC No. 24-2026 clarifies that cross-border services are taxable only when specific conditions are proven—taxability depends on evidence of where the services are performed or where the economic benefit is received, with Revenue Officers required to establish four elements. 🔗
- A Philippine Senate bill would reduce the national VAT rate by two percentage points. 🔗
South Korea – The Supreme Court held that floral decorations for hotel wedding venues are taxable supply of services (not VAT-exempt supply of goods), since the parties’ intent is to create a decorated setting rather than transfer ownership of flowers—even if flowers are later distributed to guests. 🔗
Foreign digital service providers selling to Vietnam must manage the 10% VAT that applies based on where the service is consumed—requiring VAT registration, compliant invoicing and reporting, and careful pricing/margin and cash-flow planning since B2B VAT is generally recoverable while B2C VAT is a final cost. 🔗
