TRUST
There is something rather interesting about the relationship between taxpayers and tax authorities.
It seems that tax authorities generally start from the assumption that something is wrong. Not necessarily very wrong. But wrong enough to investigate.
A number on a VAT return doesn’t match another number? Strange. An invoice was corrected? Suspicious. A VAT return was amended? Hmm… weird. A transaction doesn’t follow the pattern the tax authority expected? Now we are getting somewhere.
And if a taxpayer makes a mistake, the question sometimes seems to be less “How did this happen?” and more “Aha! So, this is how you have been trying to cheat us!”
Of course, tax authorities need to be alert. Tax fraud exists. People deliberately avoid taxes. Companies sometimes do things they shouldn’t. But there is a rather important distinction between deliberately breaking the rules and trying to follow a complicated set of rules and occasionally getting something wrong.
Most taxpayers, in my experience, are not sitting behind their desks plotting how to deprive the government of €437.62 in VAT. They are trying to run a business. And when they discover that they have made a mistake, most would probably prefer to correct it rather than turn it into an exciting new tax strategy.
This becomes particularly interesting with real-time reporting.
Because until now, tax authorities have often only seen the result. A VAT return says: €100,000 of output VAT. Fine. But imagine that, with real-time reporting, the tax authority can also see the journey towards that €100,000.
An invoice is issued. Then somebody notices the customer address is wrong. Correction.
Another invoice is issued with the wrong VAT rate. Correction.
A credit note is issued. Another invoice is replaced.
A transaction is posted in the wrong month. Correction.
Suddenly, the tax authority is looking at something very different. Not a beautifully polished VAT return, but the messy reality of running a business.
And this raises an interesting question: What will AI do with all this information? Will it become the ultimate tax detective?
Yes, AI could potentially help tax authorities identify genuinely unusual patterns and serious risks. But there is another possibility.
Perhaps AI will eventually teach tax authorities something that taxpayers have known for centuries: People make mistakes. Lots of them.
Not because they are committing fraud. Not because they are trying to cheat. But because people are people, businesses are complicated, ERP systems are complicated, VAT is complicated, and sometimes someone simply presses the wrong button.
Maybe real-time reporting will therefore have an unexpected side effect. Instead of making tax authorities more suspicious, it could make them less suspicious. Because for the first time they will be able to observe the complete story. Perhaps it will be that they finally get to see how normal businesses actually work.
And maybe, just maybe, after watching millions of transactions being corrected, amended, cancelled and re-entered, someone at the tax authority will eventually lean back, look at the data and say: “Wait a minute. Maybe they aren’t all trying to rob us after all.”
Now that would be real-time learning. And perhaps a rather welcome correction.
Wishful thinking? Let me know what you think.
Anyone interested in more VAT news, developments and occasional philosophical reflections on the strange similarities between tax law and everyday life can subscribe to the weekly VATupdate newsletter at VATupdate.com
If you have any comments, questions, or ideas that you want to share with us, please send us an email at [email protected] or leave a comment under the posts of this newsletter on LinkedIn.
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TABLE OF CONTENTS:
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WORLD
Country profiles on e-invoicing, e-reporting, e-transport, SAF-T and ViDA
- Consolidated country profiles covering e-invoicing, e-reporting, e-transport, SAF-T mandates and ViDA initiatives.
- A reference base for global rollout planning, country scoping and internal mandate tracking.
- Close to one hundred country guides are now available in the collection.
E-invoicing developments tracker
- Running tracker of global e-invoicing developments and implementation dates.
- Useful for maintaining an internal mandate calendar and prioritising implementation effort.
- Updated continuously as national timetables change.
E-invoicing and e-reporting developments in the news, week 38/2026
- Weekly consolidation of global e-invoicing and e-reporting news for week 38 of 2026.
- Useful as a cross-check against internal tracking of digital reporting developments.
- Complements this newsletter with a narrower digital compliance focus.
Briefing document: e-invoicing and e-reporting in Norway
- Briefing document and podcast covering the Norwegian e-invoicing and e-reporting framework.
- Relevant for businesses operating in Norway or scoping Nordic compliance requirements.
- Covers current obligations, the fiscalization system and the direction of travel.
Country booklet: e-invoicing and e-reporting in Nepal
- Country booklet setting out Nepalese e-invoicing and e-reporting requirements.
- Relevant for businesses with Nepalese operations or supply chain presence.
- Provides a consolidated view of local obligations in one document.
Why buyer e-invoicing compliance is harder than seller reporting
- Explains why inbound invoice processing creates greater compliance difficulty than outbound reporting under CTC regimes.
- Relevant for accounts payable process design, ERP configuration and control frameworks.
- Buyers depend on data and timing they do not control, unlike sellers.
How technology companies can prepare for e-invoicing
- Practical preparation considerations for technology businesses facing multiple e-invoicing mandates.
- Relevant for software, SaaS and digital services companies operating across several jurisdictions.
- Covers architecture choices, data quality and phased implementation.
SAF-T reporting’s impact on reducing the VAT gap in Europe
- Examines the contribution of SAF-T reporting to narrowing the European VAT gap.
- Relevant context for businesses implementing or maintaining SAF-T extractions.
- Evidence of effectiveness supports further adoption across Member States.
Incoterms do not determine VAT obligations in cross-border supplies
- Explains why delivery terms do not by themselves fix the VAT treatment of a cross-border supply.
- Relevant for supply chain, logistics and tax teams negotiating commercial terms.
- Incoterms allocate cost and risk, not responsibility for import and export VAT formalities.
EUROPE
ViDA (VAT in the Digital Age)
ViDA Single VAT Registration implementation across Member States
- VATupdate published a Member State by Member State overview of how the Single VAT Registration pillar of ViDA is being implemented nationally.
- Relevant for groups holding multiple EU VAT registrations, transferring own goods across borders, or operating call-off stock arrangements.
- Accompanying commentary sets out both the promise of a single registration and the practical limits that will remain after implementation.
link: https://www.vatupdate.com/2026/09/17/vida-single-vat-registration-promise-and-limits/
EU e-invoicing and digital reporting: new VAT landscape by 2030-2031
- Sets out the EU e-invoicing and digital reporting framework that will apply under ViDA from 2030 and 2031.
- Affects all EU-established businesses and non-established traders carrying out intra-EU transactions subject to digital reporting requirements.
- Provides the baseline timetable against which national mandates and internal system roadmaps should now be aligned.
EU VAT reforms deliver €125 billion, paving way for ViDA
- Reports that earlier EU VAT reforms have delivered an estimated €125 billion in additional revenue.
- Relevant for businesses and policy teams assessing the political direction and momentum behind EU VAT digitalisation.
- The figures are positioned as the evidence base justifying the ViDA package and further digital reporting measures.
ECJ / CJEU / General Court
Update – AG opinion on timing of input VAT deduction and invoice receipt (C-167/26)
- Advocate General opinion in a Polish referral on when the right to deduct input VAT may be exercised where the invoice is received late.
- Affects all taxable persons relying on retroactive deduction and businesses with delayed supplier invoicing across EU entities.
- Commentators describe the case as a first stress test of the General Court’s new role in VAT matters; retroactivity is at risk.
link: https://www.vatupdate.com/2026/09/17/cjeu-opinion-on-vat-deduction-timing-and-invoice-receipt/
link: https://www.vatupdate.com/2026/09/16/ecj-opinion-on-timing-of-input-vat-deductions-in-poland/
link: https://www.vatupdate.com/2026/09/16/advocate-general-defends-polish-vat-deduction-rules/
EU court limits VAT exemption for post-sale loan servicing
- The Court restricted the financial services exemption for loan servicing performed after the sale of a credit portfolio.
- Relevant for credit servicers, debt purchasers, securitisation vehicles and outsourced financial service providers.
- Commentary questions whether the outcome follows the directive text or a narrower interpretation of credit management.
EU court rejects automatic VAT exemption for excise-suspended chain transactions
- Movement under excise duty suspension does not automatically determine which supply in a chain, benefits from the intra-Community exemption.
- Affects fuel, alcohol and tobacco supply chains, and more broadly any chain transaction relying on a single cross-border movement.
- Related commentary notes stricter conditions for applying triangulation and zero rating in chain transactions.
ECJ confirms margin scheme for loss-making coffee trips
- The Court confirmed that the travel agents’ margin scheme applies to promotional day trips sold at a loss.
- Relevant for tour operators, retailers and organisers of subsidised or promotional travel packages.
- Confirms the scheme cannot be disapplied simply because no positive margin is realised on the trip.
General Court: gift of a business in two parts is not a transfer of a going concern
- A business transferred by way of gift in two separate parts did not qualify as a transfer of a going concern.
- Relevant for family succession planning, restructurings and asset deals relying on the no-supply treatment.
- Reinforces that the transferred assets must form an independent business capable of continued operation.
ECJ, CJEU and General Court VAT cases decided in 2026
- Consolidated overview of EU VAT cases decided during 2026, covering judgments, opinions and procedural decisions.
- Useful for tax, compliance and litigation teams tracking EU VAT jurisprudence and identifying relevant precedents.
- Maintained as a reference list rather than a single development and updated as further cases are decided.
European Union
EU customs reform approved, with new e-commerce importer rules
- Parliament approved the customs reform package introducing a deemed importer concept for e-commerce and a new EU customs authority.
- Directly relevant for import VAT, IOSS arrangements, marketplace liability and customs representation models.
- The Council position was published earlier in the week; the reform is presented as strengthening the single market and economic security.
EU reportedly considers limiting VAT deductions for combustion engine vehicles
- Reports indicate the Commission is considering restrictions on input VAT deduction for combustion engine company vehicles.
- Would affect fleet owners, leasing companies and employers providing company cars across the EU.
- No legislative proposal has been published; the reports reflect discussion rather than adopted measures.
EU consultation on VAT, the circular economy and sustainable business models
- Consultation launched on how EU VAT rules interact with repair, reuse, leasing and other circular business models.
- Open to businesses, associations and advisers wishing to contribute to future EU VAT policy design.
- Relevant for companies whose sustainability strategies depend on service-based or product-as-a-service models.
EU hearing targets VAT and customs fraud loopholes
- Parliamentary hearing examined structural loopholes exploited in VAT and customs fraud, including low-value e-commerce imports.
- Relevant for importers, marketplaces and logistics operators likely to face tightened obligations.
- Signals the direction of future anti-fraud measures rather than any immediate change in law.
EPPO dismantles €60 million cross-border VAT fraud ring
- The European Public Prosecutor’s Office acted against a carousel fraud network operating between Germany and Belgium.
- Relevant for businesses trading in high-risk goods categories and their counterparty screening processes.
- A parallel investigation traced the associated cash flows, underlining the financial trail now pursued in such cases.
EPPO uncovers €15.7 million VAT fraud in mobile phone trade
- Investigation into missing trader fraud in mobile phone sales, with Cypriot authorities participating in the European probe.
- Highlights continued fraud exposure in electronics supply chains and the risk of joint liability for buyers.
- Reinforces the need for documented due diligence on new suppliers in high-risk product categories.
EU e-invoicing converter adds support for EN 16931:2026
- The EU e-invoicing conversion tooling now supports the updated European standard EN 16931:2026.
- Relevant for tax and IT teams aligning invoice formats and validation rules with the revised norm.
- Supports testing and migration ahead of national mandates that reference the updated standard.
UBL 2.5 becomes critical dependency for Europe’s next e-invoicing standard
- The next European e-invoicing standard depends on the release of the UBL 2.5 syntax.
- Relevant for solution providers, access point operators and in-house teams planning format migrations.
- Timing of the UBL release therefore affects downstream implementation planning across multiple mandates.
Austria
Austria refers cross-border application of VAT margin scheme to ECJ
- Austria referred questions to the ECJ on how the VAT margin scheme applies in cross-border situations.
- Relevant for second-hand goods dealers, art and antiques traders and travel operators active in several Member States.
- The outcome may clarify divergent national practice on applying the scheme to intra-EU supplies.
Belgium
Update – Stricter VAT rules on temporary cross-border use of own goods postponed to July 2028
- Belgium postponed the tightened treatment of temporary cross-border movements of own goods until July 2028.
- Affects businesses moving equipment, tooling or stock temporarily to other Member States for use rather than sale.
- The related administrative circular has also been delayed, giving additional time before registration or reporting duties change.
New VAT chain: FPS confirmations and practical actions
- The Belgian administration confirmed practical points on the new VAT chain, covering filing, payment and the provision account.
- Applies to all Belgian VAT-registered businesses and their accounting and compliance service providers.
- Sets out concrete action points to align internal processes with the revised filing and payment cycle.
Bosnia and Herzegovina
Bosnia begins VAT refunds on first home purchases
- Bosnia and Herzegovina opened a refund scheme for VAT incurred on first-home purchases.
- Relevant for residential property developers, agents and individual buyers claiming the refund.
- Applications follow a defined procedure and evidence requirements set by the authorities.
Croatia
Croatia clarifies VAT reverse charge for MRI installation services
- Guidance clarifies whether installation of magnetic resonance imaging equipment falls within the construction reverse charge.
- Relevant for medical equipment suppliers, installers and healthcare providers receiving such services.
- Determines which party accounts for the VAT and how the invoice should be issued.
Croatia updates fiscalization rulebook effective 1 January 2027
- Croatia published a revised fiscalization rulebook taking effect on 1 January 2027.
- Affects taxpayers issuing fiscalised receipts and invoices, and their cash register and e-invoicing solution providers.
- Systems changes should be scheduled well ahead of the January 2027 effective date.
Cyprus
Cyprus clarifies VAT treatment of medical care and related services
- Clarification issued on the scope of the exemption for medical care and closely related services.
- Relevant for clinics, practitioners, diagnostic providers and healthcare service intermediaries.
- Determines the boundary between exempt care and taxable ancillary or cosmetic services.
Czech Republic
Czech Republic approves first ViDA implementation legislation
- The Czech Republic approved its first legislation implementing ViDA into domestic law.
- Relevant for businesses with Czech VAT registrations, intra-EU supply flows or platform-facilitated transactions.
- Prepares taxpayers for VAT changes taking effect in 2027 and 2028 under the ViDA timetable.
EET 2.0: crypto payments recognised and registration timing clarified
- Under EET 2.0, cryptocurrency payments are recognised for registration purposes and crypto service providers are exempted.
- Relevant for retailers accepting crypto, payment service providers and cash register solution vendors.
- Related guidance clarifies when invoice payments must be registered under the new electronic records regime.
link: https://www.vatupdate.com/2026/09/16/eet-2-0-when-invoice-payments-must-be-registered/
Trust alone will not secure a VAT refund claim
- Case commentary confirms that reliance on a counterparty’s good faith, without evidence, does not secure a VAT refund.
- Relevant for businesses claiming refunds where supplier documentation or substance is incomplete.
- Reinforces the need for contemporaneous evidence supporting both the transaction and the counterparty.
Denmark
Denmark plans major VAT changes for food, books and retail systems
- Denmark plans significant VAT rate changes for food and books, with consequential changes to retail systems.
- Affects retailers, wholesalers, publishers and providers of point-of-sale and ERP solutions.
- Reported implementation costs for business run to hundreds of millions of DKK annually, alongside one-off system changes.
Denmark proposes opt-out e-invoicing via NemHandel registration
- Proposal for an opt-out e-invoicing model based on registration in NemHandel.
- Relevant for businesses trading with Danish counterparties and for their invoicing and ERP solutions.
- Registration status would determine whether a counterparty must be invoiced electronically.
European Commission proposes extending Denmark’s daily VAT scheme for business vans
- The Commission proposed extending Denmark’s special scheme for private use of light goods vehicles.
- Relevant for Danish businesses operating mixed-use vans and accounting for private use on a daily basis.
- The extension preserves the existing simplified treatment rather than introducing new obligations.
VAT exemption for transfer of land with foundations
- Decision addressing whether land containing foundations qualifies as exempt land or taxable building land.
- Relevant for property developers, landowners and purchasers structuring land transactions.
- The classification determines whether VAT is charged and whether input VAT on development costs is recoverable.
Data fraud and tax evasion case with supplementary fine upheld
- A conviction for data fraud and tax evasion, together with a supplementary fine, was upheld on appeal.
- Relevant for businesses and directors assessing penalty exposure in Danish tax proceedings.
- Illustrates current enforcement practice and the cumulative nature of financial penalties.
Finland
VAT-exempt export sales of vehicles to private buyers outside the EU
- Guidance on the conditions for exempting vehicle sales to private buyers established outside the EU.
- Relevant for vehicle dealers and exporters relying on the export exemption for retail sales.
- Emphasises the evidence needed to demonstrate that the goods left the EU customs territory.
VAT-exempt lease of self-storage units as real estate use rights
- Leases of self-storage units were treated as exempt letting of immovable property rather than taxable services.
- Relevant for storage operators and their input VAT recovery on construction and operating costs.
- Classification affects both the VAT charged to customers and the operator’s deduction position.
France
France’s e-reporting deadline passed, VAT accuracy test begins
- With the first e-reporting deadline passed, attention shifts to the accuracy and completeness of transmitted VAT data.
- Affects all businesses within scope of the French reform, including non-established taxpayers with French obligations.
- Data quality, not initial transmission, is expected to drive the next phase of administrative scrutiny.
France: restaurant sales – B2C e-reporting or B2B e-invoice
- Practical analysis of when restaurant sales fall under B2C e-reporting rather than B2B e-invoicing.
- Relevant for hospitality operators and for businesses incurring staff, client and travel catering costs in France.
- The distinction determines both the documentation issued and the recipient’s ability to recover input VAT.
FNFE-MPE updates e-invoice and lifecycle message validation service
- FNFE-MPE updated its validation service for e-invoices and invoice lifecycle messages.
- Useful for businesses, platforms and solution providers testing conformity with French specifications.
- Supports preparation ahead of the further French e-invoicing milestones.
France extends VAT exemption to air transport in Guadeloupe and Martinique
- France extended the VAT exemption to certain air transport services in Guadeloupe and Martinique.
- Relevant for airlines, charter operators and travel agents serving the overseas departments.
- Applies to defined routes and services within the scope set by the legislation.
Germany
Germany tightens mandatory B2B e-invoicing rules ahead of 2027 rollout
- Germany tightened the mandatory B2B e-invoicing rules ahead of the next stage of the mandate.
- Affects all businesses established in Germany, including foreign groups with German fixed establishments.
- Key deadlines run through 2025, 2027 and 2028, with issuing obligations phased by turnover.
Germany approves import VAT offset model from 2030
- Germany approved an import VAT offset model, allowing deferred accounting from 2030.
- Relevant for importers currently pre-financing German import VAT at the point of customs clearance.
- Expected to improve cash flow materially, though the start date remains several years away.
Germany’s new external tax audit regulation modernises audit procedures
- The revised external audit regulation modernises audit procedures, including data access and documentation expectations.
- Relevant for in-house tax, finance and IT teams preparing for German tax audits.
- Businesses should review data extraction capability and retention practices against the updated requirements.
link: https://www.vatupdate.com/2026/09/16/external-audit-regulations-apo/
link: https://www.vatupdate.com/2026/09/16/external-audit-regulations-overview/
BFH allows appeal on input tax allocation for building extensions
- The Federal Fiscal Court permitted an appeal concerning allocation of input tax on building extensions.
- Relevant for owners of mixed-use property applying apportionment methods to construction costs.
- The case may clarify the acceptable basis for allocating input tax between taxable and exempt use.
German economy minister backs fuel VAT cut, rejects price cap
- The economy minister expressed support for a reduced VAT rate on fuel instead of a price cap.
- Relevant context for fuel suppliers, transport operators and energy-intensive businesses.
- No legislative change has been adopted; the statement reflects political position rather than law.
Union says German restaurant VAT cut failed to lower prices
- A trade union assessment concludes the reduced VAT rate for restaurant services has not lowered consumer prices.
- Relevant background for hospitality operators and for wider debate on rate reductions as a policy tool.
- May influence future discussion on whether the reduced rate is retained.
Greece
Greece’s myDATA 2.0.2 expands digital goods movement reporting
- The myDATA 2.0.2 release expands reporting obligations for movements of goods.
- Affects businesses transporting goods in Greece and their ERP, warehouse and logistics systems.
- System configuration and data mapping should be reviewed against the expanded reporting scope.
Greek tax representatives’ liability for unpaid VAT
- Clarifies the extent to which appointed tax representatives can be held liable for unpaid VAT.
- Relevant for non-established businesses using Greek fiscal representatives and for the representatives themselves.
- Affects contractual indemnities and guarantee arrangements between principals and representatives.
Iceland
Iceland fiscalization requirements summary
- Summary of Icelandic fiscalization obligations, covering receipts, cash registers and record keeping.
- Relevant for retailers, hospitality operators and point-of-sale solution providers entering the market.
- Useful as a baseline reference when scoping local compliance for new operations.
Italy
Italian Supreme Court requires evidence supporting material amendments to VAT returns
- Amendments to VAT returns involving substantive changes must be supported by adequate evidence.
- Relevant for taxpayers filing corrective or supplementary VAT returns in Italy.
- Reinforces the need to retain documentation justifying any material correction at the time of filing.
Erroneous VAT on invoices remains due unless corrected or risk eliminated
- VAT incorrectly charged on an invoice remains payable unless the invoice is corrected or the risk of revenue loss is removed.
- Relevant for businesses and associations issuing invoices to members or customers in error.
- Prompt correction is essential; delay can leave the incorrectly charged VAT permanently due.
VAT timing rules for property exchange contracts on default
- Special rules determine the taxable moment in property exchange contracts where one party defaults.
- Relevant for parties to real estate exchange arrangements and their advisers.
- The publication date of the transfer judgment is decisive for establishing when VAT becomes due.
VAT recovery and deductibility on leased property maintenance costs
- Cassation ruling on deduction and VAT recovery for maintenance costs incurred on leased premises.
- Relevant for tenants carrying out works on third-party property and for landlords recharging costs.
- Affects both the direct tax treatment of the expenditure and the input VAT recovery position.
VAT treatment of colocation services with a private cage in an Italian data centre
- Ruling on whether colocation with a dedicated cage constitutes a service connected with immovable property.
- Relevant for data centre operators and for customers assessing place of supply and registration duties.
- Classification determines where the service is taxed and whether local registration is triggered.
Anti-economic costs: new rules on deductibility and VAT
- New rules address costs considered economically unjustified and their treatment for deduction and VAT purposes.
- Relevant for intra-group service charges, management fees and cost recharge arrangements.
- Businesses should review the commercial rationale documented for such charges.
Estimatory contract: when revenue arises and VAT applies
- Clarifies when revenue arises and VAT becomes due under estimatory, or sale-or-return, contracts.
- Relevant for publishing, fashion, and consignment retail models where goods are supplied before sale is certain.
- Timing determines the period in which output VAT must be accounted for.
10% VAT confirmed for waste brokerage services
- The reduced 10% VAT rate applies to waste brokerage services.
- Relevant for waste management operators, brokers and intermediaries arranging disposal or recovery.
- Confirms the rate treatment for a service category where classification had been uncertain.
VAT non-payment: instalment plans and the €75,000 threshold
- Addresses criminal exposure for VAT non-payment, the role of instalment arrangements and the €75,000 threshold.
- Relevant for directors, finance officers and businesses in financial difficulty.
- Clarifies where the burden of proof lies when relying on an agreed payment plan as a defence.
Italy: 2025 EU VAT refund claims due by 30 September
- Refund claims for 2025 VAT incurred in other Member States must be submitted by 30 September.
- Affects Italian businesses recovering foreign VAT through the electronic refund portal.
- The deadline is strict; late submissions cannot generally be remedied.
Court convicts six in €520 million VAT fraud and laundering scheme
- Six defendants were convicted in an EPPO case involving €520 million of VAT fraud and money laundering.
- Illustrates the scale of organised fraud affecting Italian and cross-border supply chains.
- Reinforces the importance of counterparty screening for businesses trading in affected sectors.
Milan court seizes €300 million in VAT fraud and laundering case
- A Milan court ordered the seizure of €300 million in a large VAT fraud and money laundering investigation.
- Relevant for businesses assessing counterparty risk with Italian trading partners.
- Demonstrates the willingness of courts to order substantial asset seizures at an early stage.
Price and profit of crime as distinct categories in false invoicing cases
- Distinguishes the price and the profit of the offence when quantifying confiscation in false invoicing cases.
- Relevant for businesses and individuals facing allegations relating to invoicing fraud.
- The distinction affects the amount that may ultimately be confiscated.
Latvia
Single shipment, multiple sales: zero-rating in chain transactions
- Guidance on allocating the intra-Community transport, and therefore the zero rate, in chain transactions with one shipment.
- Relevant for distributors, intermediaries and groups operating multi-party cross-border sales.
- Incorrect allocation risks retrospective assessment of domestic VAT on the wrong supply in the chain.
Lithuania
Lithuania sets 2026-2028 plan to cut VAT gap to 9%
- Lithuania published a 2026-2028 plan targeting a reduction of the VAT gap to 9%.
- Relevant for all Lithuanian-registered businesses, particularly in sectors identified as higher risk.
- Signals increased audit activity and greater use of data analytics by the tax administration.
Netherlands
Update – Single VAT Registration implementation act adopted
- The bill implementing the ViDA Single VAT Registration pillar passed the House of Representatives.
- Relevant for businesses expecting to deregister in the Netherlands and report through the extended One Stop Shop.
- Companies should begin assessing which Dutch registrations can be replaced by OSS reporting.
Netherlands plans mandatory domestic e-invoicing and digital reporting from 2030
- The Dutch timetable foresees mandatory B2B e-invoicing from July 2030, with domestic digital VAT reporting following by 2031.
- Affects all businesses established in the Netherlands and their ERP and invoicing architecture.
- The timetable is explicitly aligned with the ViDA framework rather than a purely national initiative.
link: https://www.vatupdate.com/2026/09/17/dutch-einvoicing-mandatory-from-july-2030/
link: https://www.vatupdate.com/2026/09/14/netherlands-sets-2030-deadline-for-mandatory-b2b-e-invoicing/
Tax Plan 2027: VAT rate increases for ornamental horticulture and balloon flights
- The 2027 Tax Plan proposes raising VAT on ornamental horticultural products and hot air balloon flights from 9% to 21%.
- Affects growers, florists, retailers and leisure operators, alongside further VAT, excise and customs measures.
- The rate increases are proposed to take effect from 2028, subject to parliamentary approval.
link: https://www.vatupdate.com/2026/09/17/tax-plan-2027-vat-and-excise-measures/
link: https://www.vatupdate.com/2026/09/16/tax-plan-2027-vat-excise-and-customs-changes/
Low-care hospice services are not VAT exempt, court rules
- Facilitating terminal care in a low-care hospice does not qualify for the VAT exemption.
- Relevant for care institutions, foundations and their input VAT position on construction and room rental.
- Taxable treatment may improve deduction on construction costs while creating output VAT on services.
link: https://www.vatupdate.com/2026/09/16/dutch-court-holds-low-care-hospice-services-not-vat-exempt/
link: https://www.vatupdate.com/2026/09/16/low-care-hospice-services-not-vat-exempt-court-rules/
link: https://www.vatupdate.com/2026/09/16/vat-treatment-of-hospice-services-and-room-provision/
link: https://www.vatupdate.com/2026/09/14/vat-deduction-dispute-over-hospice-services-and-room-rental/
link: https://www.vatupdate.com/2026/09/14/vat-input-tax-deduction-for-construction-of-a-low-care-hospice/
Pro-rata VAT deduction allowed on legal costs in criminal investigations
- Legal fees incurred in an international bribery investigation and settlement were held partly deductible.
- Relevant for groups incurring investigation, litigation and settlement costs with mixed business purposes.
- Supports a pro-rata approach where costs relate partly to taxable business activity.
Court rules on VAT assessments, penalties and interest for 2016-2019
- Decisions issued on additional VAT assessments together with penalty fines and interest for earlier years.
- Relevant for taxpayers in dispute over historical assessments covering 2016 to 2019.
- Illustrates Dutch practice on the calculation and reduction of penalties in VAT audits.
No input VAT deduction without substantiation by proper invoices
- Deduction was denied where claims were not supported by invoices meeting the formal requirements.
- Relevant for accounts payable teams and businesses relying on incomplete supplier documentation.
- Reinforces the value of automated invoice validation controls before deduction is claimed.
North Macedonia
North Macedonia temporarily cuts VAT on oil and petroleum products to 10%
- North Macedonia temporarily reduced VAT on oil and petroleum products to 10%.
- Relevant for fuel suppliers, distributors, transport operators and their pricing systems.
- The measure is presented as temporary relief against fuel price increases.
link: https://www.vatupdate.com/2026/09/15/north-macedonia-cuts-fuel-vat-to-cushion-price-shocks/
Norway
Norway clarifies VAT deduction for temporary employee housing
- Guidance clarifies VAT deduction on barracks and temporary accommodation provided to employees.
- Relevant for construction, energy, shipyard and other project-based businesses housing workers on site.
- Determines how far accommodation costs are treated as business rather than private expenditure.
Norway clarifies VAT deductions for oil and gas partnership purchases
- Clarification on input VAT recovery for purchases made through oil and gas partnerships.
- Relevant for licence participants, operators and joint venture accounting teams.
- Affects how deduction is claimed where costs are incurred by the operator on behalf of participants.
VAT correction for disputed manufacturing contract claims after transitional rule change
- Addresses VAT corrections on disputed claims under manufacturing contracts following a change in transitional rules.
- Relevant for contractors and suppliers with contested receivables and long-running project disputes.
- Determines when output VAT can be adjusted where a claim is disputed rather than written off.
Poland
Update – KSeF penalty-free period extended to end of 2027
- The Ministry of Finance extended the suspension of KSeF sanctions until the end of 2027.
- Affects all Polish taxpayers within scope of the mandatory national e-invoicing system.
- Provides a longer soft-landing period after the mandate starts but does not change the mandate itself.
link: https://www.vatupdate.com/2026/09/20/poland-extends-ksef-penalty-deferral-until-end-of-2027/
link: https://www.vatupdate.com/2026/09/18/poland-extends-ksef-penalty-relief-until-december-2027/
link: https://www.vatupdate.com/2026/09/18/poland-extends-planned-ksef-penalty-protection-through-2027/
Poland extends KSeF tokens indefinitely, avoiding mandatory certificate shift
- Authentication tokens remain available without a fixed end date, avoiding a forced move to KSeF certificates.
- Relevant for IT and integration teams that had planned certificate migration projects.
- Removes a near-term technical dependency from KSeF implementation roadmaps.
Poland plans pre-filled e-VAT returns based on KSeF data
- The Ministry of Finance plans pre-filled VAT returns built from KSeF invoice data, alongside a national e-cash register.
- Affects all Polish VAT payers and will change reconciliation and review processes materially.
- The model is compared to the existing pre-filled e-PIT income tax return.
link: https://www.vatupdate.com/2026/09/17/polands-finance-ministry-to-launch-e-vat-like-e-pit/
Commercial invoices versus KSeF structured invoices: a legal conflict
- Analysis of the tension between commercial invoicing practice and the structured KSeF invoice.
- Relevant for contract management, order-to-cash and dispute resolution processes.
- Highlights the risk of divergence between the legal tax document and commercial documentation.
Supreme Administrative Court: debit note does not entitle VAT deduction
- The Supreme Administrative Court confirmed that a debit note is not a valid basis for VAT deduction.
- Relevant for businesses receiving late supplier corrections documented other than by invoice.
- A debit note issued after the limitation period cannot restore an expired deduction right.
Poland’s Sejm considers VAT amendments on OSS, platforms and distance sales
- Draft VAT amendments covering OSS, platform liability and distance sales are before the Sejm.
- Relevant for e-commerce sellers, marketplaces and fulfilment operators serving Polish consumers.
- The proposals remain subject to parliamentary process and may change before adoption.
Foreign branch outside a VAT group remains a separate taxable counterparty
- Transactions with a foreign branch outside the VAT group are treated as supplies between separate taxable persons.
- Relevant for banks, insurers and shared service centres operating branch structures.
- Affects the VAT treatment of internal charges and the partial exemption position.
Polish court supports activity-specific VAT ratios per cost category
- The court accepted separate pro-rata ratios for individual cost categories rather than one general ratio.
- Relevant for partly exempt businesses, public bodies and mixed-activity organisations.
- Can materially improve recovery where cost categories relate predominantly to taxable activity.
Tax authority seeks VAT on electricity sold from private installations
- The tax authority takes the position that electricity sold from private installations can constitute taxable economic activity.
- Relevant for prosumers, energy buyers and businesses purchasing from small-scale producers.
- Could trigger registration obligations for individuals previously treated as outside the scope.
Free legal aid by lawyers mostly exempt from VAT, disputes remain
- Pro bono legal assistance is largely outside the scope of VAT or exempt, though areas of dispute persist.
- Relevant for law firms, bar associations and organisations coordinating free legal aid.
- Treatment may differ depending on whether the service is state-funded or genuinely gratuitous.
VAT status of school parent councils and correct invoice issuance
- Clarifies whether school parent councils act as taxable persons and how invoices should be issued.
- Relevant for schools, local authorities and suppliers invoicing such bodies.
- Determines which entity should appear on the invoice and whether VAT registration is required.
Short-term rental operator may still qualify for cash register exemption
- Earlier non-compliance does not automatically bar a short-term rental operator from the cash register exemption.
- Relevant for accommodation providers and holiday rental operators in Poland.
- Eligibility is assessed against the conditions in the exemption rather than past conduct alone.
Portugal
Portugal VAT revenue rises €925.8 million on spending and inflation
- Portuguese VAT receipts increased by €925.8 million, driven by consumption and price effects.
- Relevant as background for revenue expectations and the scope for future rate measures.
- No change in VAT rules accompanies the reported revenue increase.
Romania
EU extends Romania’s 50% VAT deduction limit for mixed-use vehicles
- The derogation limiting input VAT deduction to 50% for mixed-use motor vehicles is extended until 2029.
- Affects Romanian fleet owners, leasing companies and employers providing company cars.
- Maintains the existing restriction rather than introducing a new limitation.
Russia
Can VAT on advances be deducted after three years?
- Addresses whether input VAT on advance payments can still be deducted once three years have passed.
- Relevant for long-term contracts, construction projects and arrangements involving substantial prepayments.
- Timing of the deduction right determines whether recovery is lost entirely.
San Marino
San Marino to make B2B electronic invoicing mandatory from 2027
- San Marino will make B2B electronic invoicing mandatory from 2027.
- Relevant for businesses trading with San Marino counterparties and for ERP and master data configuration.
- Implementation should be planned alongside the neighbouring Italian e-invoicing requirements.
Serbia
Serbia adopts VAT law amendments effective 1 January 2027
- Serbia adopted amendments to its VAT Law taking effect on 1 January 2027.
- Applies to all Serbian VAT payers, including non-established businesses with local registrations.
- Registration, deregistration and VAT return correction rules are also revised.
Serbia amends e-invoicing law and expands VAT recording rules
- Serbia amended its electronic invoicing law and expanded the scope of electronic VAT recording.
- Affects businesses using the SEF system and those issuing electronic delivery notes.
- System and process changes will be needed to reflect the wider recording obligations.
Serbia imposes immediate one-year ban for invalid fiscal receipt QR codes
- Invalid QR codes on fiscal receipts can trigger an immediate one-year prohibition on business activity.
- Relevant for retailers, hospitality operators and point-of-sale solution providers.
- The severity of the sanction makes receipt validation testing a priority control.
Slovakia
Slovakia’s mandatory e-invoicing and e-reporting rules from 2027
- Slovakia’s mandatory eFaktúra e-invoicing and e-reporting regime starts in 2027.
- Affects all Slovak-established businesses and their invoicing, ERP and reporting systems.
- Preparation guidance published this week sets out practical steps for businesses to take now.
Slovakia’s VAT Act
- Consolidated reference to the Slovak VAT Act as currently in force.
- Useful for teams assessing domestic obligations and preparing for the 2027 digital reporting changes.
- Serves as a reference document rather than a new development.
Slovenia
Deadline for VAT refund requests in other EU Member States
- Reminder of the deadline for submitting cross-border VAT refund claims in other Member States.
- Affects businesses recovering VAT incurred abroad through the electronic refund procedure.
- Missing the deadline generally results in permanent loss of the refund entitlement.
VAT guide for small taxable persons providing services abroad
- Guidance for small taxable persons supplying services to customers established abroad.
- Relevant for small businesses, freelancers and consultants with cross-border clients.
- Covers registration, reporting and the interaction with the small business exemption.
Spain
Spain clarifies technical details and timeline for mandatory B2B e-invoicing
- Spain clarified technical detail and timing for the mandatory B2B e-invoicing regime.
- Affects all businesses established in Spain, with obligations beginning from 2027.
- Provides the specification detail needed for solution selection and implementation planning.
Spain VAT guide: IVA, SII and mandatory e-invoicing developments
- Overview of Spanish VAT compliance, SII reporting and the upcoming e-invoicing obligations.
- Useful for teams onboarding Spanish entities or reviewing existing local compliance arrangements.
- Consolidates existing requirements alongside the forthcoming e-invoicing mandate.
Supreme Court: cost-plus recharges remain VAT-taxable consideration
- Recharging costs with a mark-up still constitutes consideration for a supply subject to VAT.
- Relevant for intra-group cost allocation, shared service centres and joint venture arrangements.
- Confirms that a cost-plus mechanism does not remove a transaction from the scope of VAT.
Sale of 100% of shares transferring an autonomous economic unit is outside VAT scope
- Where a share sale transfers an autonomous economic unit, the transaction falls outside the scope of VAT.
- Relevant for M&A structuring and for input VAT recovery on transaction and advisory costs.
- The analysis depends on whether the transferred assets can operate independently.
Rental of premises for personal use is not exempt unless exclusively residential
- The exemption for residential letting applies only where the premises are used exclusively for residential purposes.
- Relevant for landlords of mixed-use property and for short-term or serviced accommodation.
- Partial business use can remove the letting from the exemption entirely.
Switzerland
Swiss Supreme Court: transfer pricing adjustments can trigger VAT
- The Swiss Supreme Court confirmed that transfer pricing adjustments can have VAT consequences.
- Directly relevant for multinationals operating cost-plus or year-end true-up arrangements with Swiss entities.
- Groups should review whether TP adjustments are reflected correctly in VAT documentation and returns.
Swiss VAT treatment of insurance leads and finder’s fees
- Clarifies when lead generation and finder’s fees qualify as exempt insurance intermediation.
- Relevant for brokers, distribution partners and affinity marketing arrangements.
- The boundary determines whether fees are exempt or subject to Swiss VAT.
Swiss Parliament split over extending hotel VAT relief
- Parliament is divided over prolonging the special VAT rate for accommodation services.
- Relevant for hotels, tourism operators and their pricing and system configuration.
- No decision has been taken; the current relief remains in place pending the outcome.
Ukraine
Ukraine approves VAT reform for international e-commerce parcels
- Ukraine adopted VAT reform for low-value international parcels, together with a related postal revenue fund.
- Affects cross-border sellers, marketplaces and postal operators shipping to Ukrainian consumers.
- Removes the previous treatment of low-value consignments and introduces collection obligations.
Ukraine considers 1-point VAT increase linked to war risk insurance
- A one percentage point VAT rate increase is under discussion to fund a war risk insurance programme.
- Would affect all businesses supplying goods and services in Ukraine if enacted.
- No change has been adopted; the proposal remains at discussion stage.
Ukraine proposes lower VAT on food, medicines and essential goods
- Proposal to apply reduced VAT rates to food, medicines and other essential goods.
- Relevant for retailers, distributors and manufacturers of food and pharmaceutical products.
- The proposal is not yet law and remains subject to parliamentary consideration.
State Tax Service clarifies VAT on company separation and reorganisation
- Guidance on the VAT consequences of separating a company as part of a reorganisation.
- Relevant for groups undertaking demergers, carve-outs or internal restructuring in Ukraine.
- Determines whether transferred assets give rise to taxable supplies or adjustments.
VAT adjustment not allowed where supplier refunds the city council, not the buyer
- A supplier may not adjust VAT where the refund is made to a party other than the actual buyer.
- Relevant for public procurement settlements and arrangements involving funding authorities.
- The refund must follow the contractual supply chain for an adjustment to be permitted.
VAT registration threshold: commission sales and charity operations
- Clarifies whether gross turnover or only the commission fee counts towards the VAT registration threshold.
- Relevant for agents, commissionaires and platforms operating on a commission basis.
- Related guidance excludes free charitable aid operations from the threshold during martial law.
Input VAT credit date and allocation on corporate rights sales
- Guidance on when input VAT may be included in the tax credit.
- Relevant for Ukrainian taxpayers managing registration of tax invoices and credit timing.
- Related guidance explains input tax allocation on sales of corporate rights under Article 199.
1-VAT form submission deadlines explained
- Administrative clarification of the submission deadlines for the 1-VAT form.
- Relevant for Ukrainian compliance teams maintaining local filing calendars.
- Practical guidance rather than a change in the underlying obligation.
Meat producer pays over UAH 15 million following audit
- A meat producer paid over UAH 15 million in reassessments following a tax audit.
- Illustrates current audit focus areas and enforcement practice in the food sector.
- Relevant background for businesses assessing audit readiness in Ukraine.
United Kingdom
HMRC changes VAT refund rules for non-UK members of VAT groups
- HMRC revised its policy on refund claims by overseas businesses that are members of UK VAT groups.
- Relevant for multinational groups using UK VAT grouping and claiming refunds of UK VAT.
- Existing refund positions should be reviewed against the revised approach.
link: https://www.vatupdate.com/2026/09/14/hmrc-changes-uk-vat-refund-claims-for-non-uk-vat-group-members/
HMRC issues GFC20 on VAT for fund management services
- HMRC published guideline GFC20 on the VAT treatment of fund management services.
- Relevant for asset managers, fund administrators and delegated investment managers.
- Addresses outsourced management services and the boundary of the exemption.
Upper Tribunal: orthodontic aligners are not exempt dental prostheses
- Clear orthodontic aligners do not qualify as exempt dental prostheses.
- Relevant for dental suppliers, orthodontic providers and aligner manufacturers.
- The products are therefore standard rated, affecting pricing and recovery positions.
FTT: collagen drinks are not zero-rated as food
- The First-tier Tribunal held that liquid collagen beauty supplements are standard rated rather than zero-rated food.
- Relevant for the food supplement, beauty and wellness sectors.
- Product positioning and marketing evidence were significant to the classification outcome.
FTT rejects input tax claim on labour supplies
- Input tax was denied on labour supplies where evidence did not support the claimed supplies.
- Relevant for construction, logistics and other businesses using labour providers.
- Reinforces the evidential burden on the claimant rather than the supplier.
Input tax denied on payroll companies’ invoices
- Deduction was refused on invoices issued by payroll companies.
- Relevant for businesses engaging temporary labour through intermediary payroll structures.
- Highlights the need for substance and documentation in labour supply chains.
Temporary zero rate of VAT for domestic electricity in Great Britain
- A temporary zero rate was introduced for domestic electricity supplies in Great Britain.
- Affects energy suppliers, their billing systems and consumer price communications.
- Suppliers must apply the correct rate for the defined temporary period.
UK low value import reform: what retailers need to know
- Explains planned changes to the treatment of low value imports into the UK.
- Relevant for retailers, marketplaces and overseas sellers shipping directly to UK consumers.
- Preparation is advisable ahead of the change in import VAT and duty treatment.
UK marketplace VAT rules could change for retailers
- Possible extension of the marketplace deemed supplier rules is under discussion.
- Relevant for online retailers, platform operators and their sellers.
- Would shift VAT accounting responsibility further towards the platform if implemented.
VAT on new means of transport purchased in Northern Ireland for removal to the EU
- Guidance on new means of transport acquired in Northern Ireland and removed to the EU.
- Relevant for vehicle, boat and aircraft dealers and their private and business customers.
- Sets out the treatment under the Northern Ireland arrangements for goods.
VAT registration upheld on business transfer appeal
- Registration was upheld where a business transfer brought the transferee within the registration requirement.
- Relevant for asset deals, business purchases and transfer of a going concern analysis.
- The transferor’s turnover history can determine the transferee’s registration obligation.
Appeal dismissed on fixed and escalating penalty notices
- The Tribunal dismissed an appeal against fixed and escalating penalty notices.
- Relevant for taxpayers facing procedural penalties for failure to comply with information notices.
- Illustrates the limited scope for challenging such penalties absent reasonable excuse.
DFG admin fees VAT appeal: tribunal hearing update
- Procedural update in the appeal concerning the VAT treatment of administration fees.
- Relevant for sectors charging separate administration or arrangement fees alongside a main supply.
- The outcome may affect whether such fees follow the treatment of the principal supply.
Hospitality businesses urge lower VAT rate for the sector
- Hospitality businesses are calling for a reduced VAT rate for the sector.
- Relevant background for operators in hospitality, leisure and the night-time economy.
- No rate change has been announced; the campaign reflects sector lobbying.
link: https://www.vatupdate.com/2026/09/14/hospitality-businesses-urge-burnham-to-cut-vat-for-sector/
AMERICAS
Argentina
Update – Argentina expands mandatory e-invoicing to exempt and simplified taxpayers
- Argentina extended mandatory electronic invoicing to VAT-exempt taxpayers and those under the simplified regime.
- Affects small suppliers and the customers who rely on their documentation for deduction purposes.
- Businesses purchasing from such suppliers should expect a change in the documents received.
Belize
Belize advances GST e-invoicing pilot with legal framework in place
- Belize has put the legal framework in place and is advancing its GST e-invoicing pilot.
- Relevant for businesses operating in Belize and for regional solution providers.
- Participation in the pilot precedes any wider mandatory rollout.
Bolivia
Bolivia consults on e-invoicing rules separating VAT from the invoice price
- Bolivia is consulting on new invoicing specifications requiring VAT to be shown separately from the price.
- Affects invoicing systems, price display and consumer-facing documentation.
- The stated aim is a more transparent VAT framework for customers.
Brazil
Brazil updates EFD guide to include electronic natural gas invoice
- Brazil updated the EFD guidance to cover accounting for the electronic natural gas invoice.
- Relevant for energy sector participants and their fiscal reporting systems.
- Reporting configuration should be aligned with the updated guidance.
STJ rules CPRB must be included in PIS/COFINS tax bases
- The Superior Court of Justice ruled that CPRB must be included in the PIS/COFINS tax bases.
- Relevant for taxpayers applying the payroll-based social contribution regime.
- Affects the calculation of the contribution base and any related refund claims.
Canada
British Columbia brings professional services within PST from 1 October 2026
- British Columbia extends PST to professional services from 1 October 2026.
- Affects consultants, advisers and other service providers, and their clients in the province.
- Registration and system changes are needed before the October effective date.
BCCA confirms HST cannot be set off against commercial debts
- The Court of Appeal confirmed that HST collected cannot be set off against commercial debts.
- Relevant for insolvency practitioners, receivers and creditors dealing with distressed businesses.
- Amounts collected are held for the Crown and remain outside ordinary set-off rights.
CRA clarifies GST/HST direct cost exemption for charities and public service bodies
- CRA clarified the application of the direct cost exemption for charities and public service bodies.
- Relevant for charities, not-for-profits and public bodies making supplies of goods and services.
- Determines whether supplies are exempt and how input tax credits may be claimed.
GST/HST registration rules for condominium corporations
- Clarifies when condominium corporations must register for and account for GST/HST on fees.
- Relevant for property managers, condominium boards and their advisers.
- Registration status affects both fee invoicing and recovery on building costs.
Manufacturer incentive payments to employees are not taxable supplies
- Incentive payments made by manufacturers to dealership employees do not constitute consideration for a supply.
- Relevant for automotive, retail and distribution incentive programmes.
- Confirms such payments fall outside the scope rather than being taxable supplies.
Chile
Chile introduces validation process for electronic tax documents
- Chile introduced a new validation process for electronic tax documents.
- Relevant for issuers of electronic documents and their e-invoicing service providers.
- Documents failing validation may not be accepted, affecting invoicing continuity.
Colombia
DIAN: transfer pricing adjustments do not automatically affect creditable VAT
- DIAN confirmed that transfer pricing adjustments do not automatically change the creditable VAT position.
- Relevant for multinationals with Colombian entities applying year-end TP adjustments.
- Contrasts with the Swiss decision reported this week, underlining divergent national approaches.
Curaçao
Curaçao proposes USD 75 tourist entry tax and removal of accommodation turnover tax
- Curaçao proposes replacing the turnover tax on accommodation with a USD 75 tourist entry tax.
- Relevant for hotels, travel operators and booking platforms serving the island.
- Would change both the tax point and the party responsible for collection.
Grenada
Grenada moves VAT-free shopping days to 2-3 October 2026
- Grenada rescheduled its VAT-free shopping days to 2 and 3 October 2026.
- Relevant for retailers and their point-of-sale configuration and promotional planning.
- Systems must apply the relief only on the revised dates.
link: https://www.vatupdate.com/2026/09/14/grenada-reschedules-vat-free-shopping-days-to-october-2-3-2026/
Mexico
Mexico proposes optional 7% VAT regime for RESICO taxpayers in 2027
- Mexico’s 2027 economic package proposes an optional 7% VAT regime for RESICO taxpayers.
- Relevant for small businesses and individuals within the simplified trust regime.
- The package also includes CUCA changes and sector-specific incentives.
Nicaragua
Nicaragua sets 20 September VAT prepayment deadline for large taxpayers
- Nicaragua confirmed a 20 September VAT prepayment deadline for large taxpayers.
- Relevant for designated large taxpayers managing local cash flow and compliance calendars.
- Late payment exposes taxpayers to interest and penalties.
Peru
Peru: SUNAT updates Form 0623 to allow digital VAT currency corrections
- SUNAT updated Form 0623 to permit currency corrections for digital services VAT.
- Relevant for non-resident digital service providers filing in Peru.
- Allows correction of currency errors without a full re-filing process.
Suriname
VAT in Suriname: rates, compliance and digitalisation
- Overview of the Surinamese VAT system covering rates, compliance duties and digitalisation plans.
- Useful for businesses entering the market or assessing local registration requirements.
- Serves as a country reference rather than a new development.
United States
California expands sales and use tax to SaaS and digital products from 2027
- California will extend sales and use tax to SaaS and other digital products from 2027.
- Significant for software vendors, SaaS providers and any business selling digital products into California.
- Taxability determinations and tax engine configuration will need review well before 2027.
Colorado expands sales tax to software and SaaS in 2027
- Colorado will make software and SaaS taxable from 2027.
- Relevant for technology companies reviewing nexus, taxability and customer contracting.
- Adds to the growing number of US states taxing digital products.
Maine sales tax on SaaS and digital products
- Overview of the taxability of SaaS and digital products in Maine.
- Relevant for digital businesses with US customers and multistate compliance obligations.
- Useful when mapping state-by-state taxability of software offerings.
Indiana ruling on sales tax for cloud-based educational platforms
- Determination issued on the sales tax treatment of cloud-based educational platforms.
- Relevant for edtech providers and institutions purchasing online learning services.
- Classification depends on the nature of the access granted to the customer.
Georgia: DNA testing services untaxed, sample kits taxable
- The Department of Revenue distinguished untaxed testing services from taxable tangible sample kits.
- Relevant for businesses offering bundled service and product propositions.
- Bundling and invoicing practice can determine the overall tax outcome.
Missouri updates sales and use tax rules for third-party shipments
- Missouri revised its rules on third-party drop shipments.
- Relevant for distributors, manufacturers and dropshipping arrangements involving multiple parties.
- Affects which party collects tax and what exemption documentation is required.
Missouri ruling clarifies limits of medical equipment sales tax exemptions
- A ruling clarified the boundaries of the exemption for medical equipment.
- Relevant for medical device suppliers, healthcare providers and distributors.
- Equipment falling outside the defined categories remains taxable.
New York launches sales tax penalty and interest discount program
- New York launched a programme offering reduced penalties and interest on qualifying sales tax liabilities.
- Relevant for businesses with identified historical sales tax exposure in the state.
- Participation may substantially reduce the cost of regularising past periods.
Sales tax rate changes effective 1 October 2026
- Overview of state and local sales tax rate changes taking effect on 1 October 2026.
- Affects all businesses collecting US sales tax across multiple jurisdictions.
- Tax engine and ERP rate tables should be updated ahead of the effective date.
Oklahoma: sales tax nexus, zero returns and permit cancellation
- Guidance on nexus, filing zero returns and cancellation of sales tax permits in Oklahoma.
- Relevant for remote sellers managing registrations across multiple states.
- Helps determine whether a registration should be maintained or cancelled.
Sales tax voluntary disclosure agreements: resolving historical exposure
- Explains how voluntary disclosure agreements can resolve historical sales tax exposure.
- Relevant for businesses that have identified past non-compliance in US states.
- VDAs typically limit the look-back period and waive penalties.
Washington updates sales tax refund guidance for qualified non-residents
- Washington updated its refund procedure for qualified non-resident purchasers.
- Relevant for retailers serving cross-border customers, particularly from Canada.
- Refunds follow a defined claim process rather than exemption at the point of sale.
Updated sales and use tax guidance for dry cleaning businesses
- Revised guidance on the taxability of dry-cleaning services and related charges.
- Relevant for dry cleaning operators and businesses providing laundry services.
- Clarifies which ancillary charges fall within the taxable base.
Florida extends Second Amendment sales tax holiday through 31 December
- Florida extended its Second Amendment sales tax holiday through 31 December.
- Relevant for affected retailers and their point-of-sale and promotional configuration.
- The scope of qualifying items has also been expanded.
ASIA-PACIFIC
Armenia
Armenia: VAT rules for non-resident digital service providers
- Armenia set out registration and collection obligations for non-resident suppliers of digital services.
- Affects streaming, software, gaming and other digital businesses with Armenian customers.
- Providers exceeding the local threshold must register and account for Armenian VAT.
Australia
ATO guidance on correcting GST errors in a later BAS
- ATO guidance sets out when GST errors may be corrected in a later business activity statement.
- Relevant for Australian-registered businesses managing routine error correction processes.
- Correction limits depend on the type of error and the entity’s turnover.
GST group registration, operation and cancellation
- Guidance on forming, operating and cancelling a GST group, together with GST branch registration.
- Relevant for corporate groups structuring Australian registrations and intra-group transactions.
- Grouping removes intra-group supplies from the GST net while creating joint liability.
link: https://www.vatupdate.com/2026/09/14/gst-branch-registration-operation-and-cancellation-guide/
Debate over a fairer GST in Australia
- Commentary on options for reforming the Australian GST base and rate.
- Relevant as policy background for businesses operating in Australia.
- No legislative change has been proposed; the piece reflects debate rather than reform.
Bangladesh
Bangladesh VAT reform delay questioned amid gas crisis
- Analysis of the cost of postponing VAT reform in the current energy environment.
- Relevant for businesses planning or operating in Bangladesh and assessing fiscal risk.
- Delay is argued to weaken revenue at a time of significant economic pressure.
Quarterly VAT payments risk straining cash flow
- Assessment of the cash flow impact of moving to a quarterly VAT payment cycle.
- Relevant for businesses managing working capital and for revenue collection planning.
- Longer payment intervals shift timing risk between taxpayers and the administration.
NBR detects Tk 3.76 crore VAT evasion by online retailer
- The National Board of Revenue detected VAT evasion of Tk 3.76 crore by an online retailer.
- Signals increased scrutiny of e-commerce sellers and digital sales channels.
- Relevant for online businesses reviewing their local registration and reporting position.
China
China issues VAT guidance on input tax deduction and retroactive application
- China issued guidance on input tax deduction, including retroactive application of the rules.
- Relevant for businesses with Chinese entities reviewing historical credit positions.
- Retroactive treatment may allow recovery in periods previously treated as closed.
India
GST Council to discuss e-invoicing and ITC reforms in October
- E-invoicing and input tax credit reforms are on the agenda for the October GST Council meeting.
- Relevant for all Indian GST registrants and for groups with Indian operations.
- The Council may also review GST on MDR charges and the treatment of GCC services as exports.
link: https://www.vatupdate.com/2026/09/20/gst-council-may-review-gst-on-mdr-issues/
Genuine buyers protected from ITC denial absent collusion
- Bona fide purchasers should not be denied input tax credit where there is no collusion with a defaulting supplier.
- Relevant for businesses exposed to supplier non-compliance in Indian supply chains.
- Reinforces the value of documented supplier due diligence as a defence.
Gujarat High Court examines ITC on long-term land lease for gigafactory
- The Gujarat High Court is examining input tax credit on long-term lease premiums for industrial construction.
- Relevant for capital-intensive projects, manufacturing investments and industrial park developers.
- The outcome could materially affect project cost models for large investments.
Patna High Court: GST refund cannot be withheld merely due to pending appeal
- A pending departmental appeal is not sufficient grounds to withhold a sanctioned GST refund.
- Relevant for exporters and other refund claimants facing administrative delay.
- Supports enforcement of refund entitlements where no stay has been granted.
West Bengal AAR: water pipeline works for IIT Kharagpur taxable at 18%
- Advance ruling held that water pipeline works for an educational institution are taxable at 18%.
- Relevant for works contractors supplying educational and government institutions.
- A separate application on faculty consultancy was rejected for lack of a supply by the applicant.
Legacy VAT refunds stalled in Gujarat as GST transition drags
- Pre-GST VAT refunds remain unpaid in Gujarat due to missing bank details and administrative delay.
- Relevant for businesses with legacy refund claims still outstanding from the GST transition.
- Claimants should verify that their bank and registration details are current.
Kerala GST detects Rs 7.56 crore evasion in railway parking services
- Kerala GST authorities detected Rs 7.56 crore of evasion relating to railway parking services.
- Relevant for concession operators and businesses providing services on public infrastructure.
- Illustrates enforcement focus on service concessions and licence arrangements.
Indonesia
Indonesia orders payment institutions to collect VAT on cross-border digital transactions
- Indonesia requires payment institutions to collect VAT on cross-border digital transactions.
- Affects payment processors, acquirers and foreign digital suppliers serving Indonesian customers.
- Shifts collection responsibility towards the payment layer rather than the supplier.
Japan
Japan approves temporary consumption tax cut on food from 2027
- The Cabinet approved a temporary reduction of consumption tax on food, planned for two years from 2027.
- Affects food retailers, manufacturers and their pricing and point-of-sale systems.
- The funding framework has not yet been settled, leaving some uncertainty over final design.
link: https://www.vatupdate.com/2026/09/15/japan-plans-two-year-food-tax-cut-to-ease-rising-prices/
Kazakhstan
Kazakhstan proposes VAT rules for foreign e-commerce and digital platforms
- Draft Tax Code changes would extend VAT obligations for foreign e-commerce and digital services companies.
- Domestic platforms would become liable for VAT on foreign business-to-consumer sales they facilitate.
- Relevant for marketplaces, digital suppliers and payment intermediaries serving Kazakh consumers.
Kazakhstan plans pre-import VAT payment on EAEU imports
- Kazakhstan plans to require VAT payment before import for goods arriving from EAEU countries.
- Relevant for importers and distributors sourcing from within the Eurasian Economic Union.
- Would bring forward the cash flow impact of import VAT significantly.
Kazakhstan integrates customs systems with digital tenge for VAT payments
- Customs systems are being connected to the digital tenge platform for VAT settlement.
- Relevant for importers and their treasury and customs clearance processes.
- Part of a broader move towards digital settlement of tax and customs liabilities.
Malaysia
Update – IRBM updates e-Invoice guideline with voluntary disclosure programme
- IRBM updated its e-Invoice guidance, introducing a special voluntary disclosure programme and a revised exemption threshold.
- Affects Malaysian taxpayers within the phased e-invoicing rollout and smaller businesses near the threshold.
- Follows publication of the Specific Guideline version 4.9 earlier in the week.
link: https://www.vatupdate.com/2026/09/15/malaysia-publishes-e-invoice-specific-guideline-version-4-9/
Malaysia SST: rates, thresholds and business impact
- Overview of Malaysian sales and service tax rates, registration thresholds and business impact.
- Useful for investors and businesses establishing or expanding Malaysian operations.
- Serves as a country reference alongside the separate e-invoicing requirements.
Maldives
Maldives GST rules target foreign booking platforms and tour operators
- GST obligations extended to foreign booking platforms and tour operators.
- Relevant for travel intermediaries, online travel agents and resort operators.
- Non-resident platforms may face registration and collection duties in the Maldives.
New Zealand
New Zealand proposes GST amendments in Taxation Bill
- GST amendments are included in the government’s new Taxation Bill.
- Relevant for all businesses registered for GST in New Zealand.
- The measures remain subject to parliamentary process before enactment.
GST liability on deregistration for property sales
- Clarifies the GST consequences arising on deregistration where property is held by the taxpayer.
- Relevant for property investors, developers and businesses winding down registered activities.
- Deregistration can trigger an output tax charge on assets retained.
Pakistan
FBR extends deadline for August 2026 sales tax and excise returns
- The FBR extended the filing deadline for August 2026 sales tax and federal excise returns.
- Relevant for Pakistani registrants and their local compliance calendars.
- The extension applies to the specified period only.
Pakistan cuts sales tax on locally made hybrid vehicles to 18%
- Pakistan reduced sales tax on locally manufactured hybrid vehicles to 18%.
- Relevant for vehicle manufacturers, dealers and fleet purchasers.
- The reduction applies to locally produced vehicles rather than imports.
link: https://www.vatupdate.com/2026/09/16/pakistan-cuts-sales-tax-on-local-hybrid-vehicles-to-18/
FBR adds steel manufacturers under voluntary corporatization order
- The FBR added further steel manufacturers to the voluntary corporatization order.
- Relevant for sales tax compliance and documentation in the steel sector.
- Inclusion affects the applicable registration and reporting framework.
Philippines
BIR clarifies VAT refund rules for export-oriented enterprises
- The BIR clarified VAT refund entitlement for export-oriented enterprises during the CREATE MORE transition.
- Relevant for exporters, registered business enterprises and their local suppliers.
- Determines which purchases qualify for zero rating and which require a refund claim.
BIR removes VAT on electricity system loss charges
- VAT no longer applies to system loss charges on electricity bills.
- Relevant for distribution utilities, electricity cooperatives and their billing systems.
- Consumers benefit from a reduced bill; utilities must reconfigure invoicing.
link: https://www.vatupdate.com/2026/09/18/akbayan-welcomes-vat-removal-on-electricity-system-loss-charge/
Taiwan
Taiwan clarifies VAT treatment of virtual assets, NFTs and service fees
- Taiwan clarified the distinction between exempt virtual asset transactions and taxable NFT sales and service fees.
- Relevant for crypto exchanges, NFT marketplaces and digital asset service providers.
- Fee structures should be reviewed against the clarified classification.
Uzbekistan
Uzbekistan requires foreign marketplaces to register and pay VAT
- Foreign online platforms must register and account for tax on sales to Uzbek customers from 12 December.
- Affects marketplaces, digital service providers and cross-border sellers.
- Registration should be completed ahead of the December start date.
Uzbekistan eases VAT refund rules for key sectors
- Uzbekistan simplified VAT refund procedures for key sectors, removing the sustainability rating requirement.
- Relevant for exporters, manufacturers and businesses in a recurring refund position.
- Should shorten the time taken to obtain refunds.
New VAT import settlement option for foreign trade participants from October 2026
- An alternative settlement mechanism for import VAT becomes available from October 2026.
- Relevant for importers and foreign trade participants managing customs cash flow.
- Use of the option is elective rather than mandatory.
Debt repayment does not grant a 0% VAT rate
- Clarifies that settling a debt does not by itself entitle a transaction to zero rating.
- Relevant for businesses structuring settlements, set-offs and debt assignments.
- The underlying supply determines the rate, not the method of payment.
Vietnam
Tax authority guidance on foreign exchange rates on e-invoices
- Guidance issued on which exchange rates apply when issuing e-invoices in foreign currency.
- Relevant for exporters, importers and businesses contracting in foreign currency in Vietnam.
- Incorrect rate selection can lead to understated or overstated VAT.
Vietnam wood industry seeks clear VAT rules for semi-processed timber
- The wood industry has requested clarification of the VAT rate applicable to semi-processed timber.
- Relevant for timber producers, processors and exporters in Vietnam.
- No change has been adopted; the request reflects continuing classification uncertainty.
MIDDLE EAST
United Arab Emirates
UAE amends VAT Executive Regulation on input tax and composite supplies
- The UAE amended its VAT Executive Regulation, addressing input tax recovery and the composite versus multiple supplies distinction.
- Further changes cover medical products, the capital assets scheme, cash payments and employee accommodation.
- FTA public clarification VATP046 accompanies the amendments and should be reviewed against current recovery positions.
link: https://www.vatupdate.com/2026/09/16/uae-vat-amendments-and-fta-public-clarification-overview/
link: https://www.vatupdate.com/2026/09/16/uae-vat-2026-composite-vs-multiple-supplies-explained/
AFRICA
Chad
Chad exempts animal feed inputs and agricultural equipment from import taxes
- Chad granted import tax relief for animal feed, fodder inputs and agricultural equipment.
- Relevant for agribusiness importers, distributors and equipment suppliers.
- Relief applies to defined categories of goods on import.
Comoros
Comoros fiscalisation requirements, AGID rules and compliance
- Overview of fiscalisation obligations in the Comoros and the applicable administrative rules.
- Relevant for retailers, hospitality operators and point-of-sale solution providers.
- Useful as a baseline reference when scoping local compliance.
Ghana
Ghana’s VAT gap: compliance losses and revenue forgone
- Analysis of the size and composition of the Ghanaian VAT gap, separating compliance losses from revenue forgone.
- Relevant context for businesses operating in Ghana and anticipating enforcement measures.
- Large gaps typically precede tightened compliance and audit activity.
Kenya
KRA clarifies missing August 2026 VAT invoices in taxpayer returns
- The KRA explained why invoices were missing from pre-filled August 2026 returns and the corrective steps required.
- Relevant for all Kenyan VAT filers relying on system-generated return data.
- Taxpayers should reconcile pre-filled data against their own records before filing.
KRA system downtime disrupts VAT return filing ahead of deadline
- Portal downtime disrupted VAT return filing shortly before the deadline.
- Relevant for compliance teams managing late filing risk and penalty exposure.
- Evidence of attempted filing should be retained where deadlines were affected.
Rwanda
Rwanda’s new VAT order on online goods and services: compliance gaps
- Analysis of Rwanda’s new VAT order covering online goods and services, and the practical gaps it leaves.
- Relevant for digital platforms, marketplaces and remote sellers serving Rwandan customers.
- Ambiguities remain on registration mechanics and enforcement.
Seychelles
Seychelles steps up preparations for real-time e-invoicing integration
- The Seychelles is advancing preparations for real-time invoice integration with the tax authority.
- Relevant for businesses operating locally and for regional solution providers.
- Early engagement is advisable ahead of technical specifications being finalised.
South Africa
South Africa’s VAT modernisation: e-invoicing, interoperability and e-reporting
- Outline of South Africa’s VAT modernisation programme covering e-invoicing interoperability and digital reporting.
- Relevant for businesses planning South African rollouts and group-wide e-invoicing architecture.
- Interoperability is positioned as central to the intended design.
VAT deregistration requirements for South African schools from 1 January 2026
- Schools must meet VAT deregistration requirements from 1 January 2026.
- Relevant for educational institutions currently registered and their advisers.
- Deregistration can trigger output tax on assets retained at that date.
Tax Court allows late VAT input tax amendment on new factual grounds
- The Tax Court permitted a late amendment to an input tax claim based on new factual grounds.
- Relevant for taxpayers in dispute seeking to introduce additional arguments or evidence.
- Illustrates the circumstances in which late amendments may be accepted.
Zambia
Zambia considers gold VAT cut to formalise artisanal mining
- Zambia is considering a reduced VAT rate on gold to encourage formal trading.
- Relevant for mining operators, precious metals traders and refiners.
- The stated aim is to bring artisanal mining activity into the formal economy.
