Global VAT legislative Changes as of January 1, 2026

• Belgium: All Belgian VAT-registered businesses must use structured e-invoicing (Peppol-based) for domestic B2B transactions starting Jan 1, 2026. This mandate is confirmed and aims to digitize invoicing nationwide, aligning with Belgium’s approved plan for 2026. [vatupdate.com]
• Croatia: Launches “Fiscalization 2.0” – mandatory electronic invoicing for all domestic B2B and B2G transactions from Jan 1, 2026. Invoices between Croatian businesses (or to government) must be issued in a structured e-format and reported in real time to the Tax Authority’s fiscalization system. (This covers any transaction subject to Croatian VAT where both supplier and customer are established in Croatia.) Transactions not under the e-invoice mandate (e.g. abroad) will be e-reported instead. Status: Confirmed by law (Croatia obtained EU approval to derogate from the VAT Directive and has embedded this in national law). [fiscal-req…ements.com], [marosavat.com]
• Bulgaria: Adopts the Euro as its currency on Jan 1, 2026, entering a one-month dual currency phase. During January, prices must be shown in both leva and euros and both currencies are accepted, to ease the transition. All leva bank accounts will auto-convert to euros on that date. In parallel, Bulgaria begins phased implementation of SAF-T (Standard Audit File for Tax) digital tax reporting. From Jan 1, 2026, large enterprises (meeting high asset/revenue thresholds) must start monthly SAF-T submissions (XML files of general ledger, invoices, etc.) to the tax authority. This is the first wave of SAF-T, eventually extending to all businesses by 2030. (Note: Bulgaria’s SAF-T rollout was enacted in 2025 and kicks off with big companies in 2026.) [fiscal-req…ements.com] [vatupdate.com]
• Italy: Implements a new consolidated VAT law (Testo Unico IVA) effective Jan 1, 2026. This long-awaited reform compiles and simplifies Italy’s VAT legislation into one code. The new code doesn’t change VAT rates but reorganizes and modernizes the legal framework, aiming to reduce complexity built up over decades. [vatupdate.com]
• Poland: Significant VAT law reform takes effect, streamlining various rules. Changes include simplifying compliance, extending the statute of limitations for VAT audits, and clarifying VAT refund procedures. These amendments overhaul Poland’s VAT Act to make it more transparent and taxpayer-friendly in 2026. (Note: These legal reforms are separate from Poland’s e-invoicing mandate, which starts later on Feb 1, 2026.) [vatupdate.com]
• China: Introduces its first unified VAT Law on Jan 1, 2026. This is a major legislative milestone consolidating China’s VAT regulations at the national level. VAT rates remain unchanged, but the law codifies existing practices and clarifies rules, representing a formal modernization of China’s VAT system. [vatupdate.com]
• France: Abolishes the “Regime 42” import VAT mechanism for non-EU importers as of Jan 2026. Under the new rule, only EU-based buyers or fiscal representatives can act as importer of record to apply VAT exemptions on imports (Regime 42). This change means non-EU companies can no longer directly import into France under the VAT-free regime and may need an EU intermediary – tightening compliance for import VAT. (France’s broader e-invoicing mandate for domestic transactions begins later in 2026 – see September 1, 2026.) [vatupdate.com]
• Slovenia: Introduces VAT group registration from Jan 2026. Related companies can elect to form a single VAT group, allowing intra-group transactions to be ignored for VAT. This measure is aimed at simplifying VAT accounting for corporate groups. [vatupdate.com]
• Portugal: Implements targeted VAT measures in 2026. For example, olive oil will enjoy a reduced 6% VAT rate (down from 13%) to support local industries, and certain fertilizers and seeds become VAT-exempt. These specific changes reflect fiscal policy choices to spur agriculture and ease consumer costs. [vatupdate.com]
• Germany: Makes permanent the temporarily lowered 7% VAT rate on restaurant and catering services (food served in hospitality) effective Jan 1, 2026. This reduced rate had been introduced during COVID and set to expire; the German government has now confirmed 7% as the ongoing rate for dining services. (Standard VAT remains 19% for most goods.) This decision aims to support the hospitality sector’s recovery while keeping menu prices down. [vatupdate.com]
• Netherlands: Reverts the VAT on hotel accommodations back to the standard 21% rate from Jan 2026, after a period of a reduced 9% rate. Essentially, the temporary 9% VAT for accommodation ends at 2025’s close, meaning hotels, B&Bs, and similar lodging in the Netherlands will charge 21% VAT again starting 2026. [vatupdate.com]
• Finland: Adjusts its VAT rates: The reduced VAT rate on items like food, passenger transport, and accommodation drops by 0.5 percentage points to 13.5% (from 14%) as of January 2026. The standard VAT rate remains 25.5%, reflecting a prior half-point increase (Finland had raised its standard rate to 25.5% earlier, and it stays at that level). The reduction in the lower rate is intended to ease consumer costs on essentials like food and travel. [vatupdate.com], [vatupdate.com] [vatupdate.com]
• Slovakia: Expands the scope of its top VAT rate: from 2026, high-sugar and high-salt foods will no longer enjoy reduced VAT and will be taxed at the full 23% standard rate. This effectively adds certain unhealthy foods to the standard VAT category as a public health measure (using tax policy to discourage high sugar/salt consumption). Other VAT rates in Slovakia remain unchanged. [vatupdate.com]
• Austria: Introduces a 0% VAT rate on feminine hygiene products and contraceptives from January 2026. By zero-rating items like tampons, sanitary pads, and birth control, Austria aims to make them more affordable and address “period poverty.” This change aligns Austria with a trend in Europe to eliminate VAT on menstrual products. [vatupdate.com]
• Denmark: Abolishes its 25% VAT on books in 2026, moving books to a 0% VAT rate. Denmark had one of the highest VAT on books worldwide; this cut to zero (aligning with Norway’s longstanding 0% book VAT) is intended to combat declining reading habits by making books cheaper. The change is scheduled to take effect in early 2026 (the government’s plan suggests from January 1, 2026) and will be closely monitored to ensure publishers pass on the savings in lower book prices. [fiscal-req…ements.com]
• Zimbabwe: Increases its standard VAT rate from 15% to 15.5% as of Jan 1, 2026. This 0.5% hike is a revenue-raising measure included in Zimbabwe’s 2026 budget, modestly boosting the VAT on goods and services to help fiscal balances. [vatupdate.com], [vatupdate.com]
• Liberia: Raises its Goods and Services Tax (GST, similar to VAT) from 12% to 13% on Jan 1, 2026. This 1 percentage-point increase broadens government revenue. It’s part of Liberia’s tax policy changes for 2026, aligning the GST closer to regional VAT levels. [vatupdate.com]
• Angola: Large taxpayers in Angola must issue electronic invoices for almost all sales from January 2026 onward. Angola introduced mandatory e-invoicing in 2025 with a grace period – a “soft landing” until Dec 31, 2025. As of Jan 1, 2026, that grace period ends, meaning full enforcement: big companies (annual sales > AOA 25 million) must comply with e-invoicing requirements in real time. (Angola’s 2026 tax reforms also include other measures like new filing systems and lower VAT on certain items, but e-invoicing is a key compliance change effective Jan 1.) [vatupdate.com] [marosavat.com]
• Morocco: Begins a phased rollout of e-invoicing for large taxpayers in early 2026. While not all details are public, Morocco’s tax authority is launching electronic invoicing first with large companies in Q1 2026 and will extend to others later in the year. This gradual approach will start soon after Jan 1. (By “phased launch in early 2026,” Morocco is expected to require its largest VAT payers to start issuing e-invoices and reporting them, as a pilot before broader mandates.) [vatupdate.com]
• Malaysia: Enters the fourth wave of its e-invoicing mandate in January 2026. Effective 2026, all businesses with annual sales above 1 million MYR are required to join Malaysia’s e-invoicing system. (Malaysia has been staging implementation by company size: the final phase from Jan 1, 2026 brings in medium-sized taxpayers over the RM1 million threshold.) These companies must issue invoices electronically through the government platform, as part of Malaysia’s roadmap to full e-invoicing by 2027. [vatupdate.com]
• Azerbaijan: Expansion of digital services VAT – from Jan 2026, non-resident providers of digital services to Azerbaijani consumers must register and charge 18% VAT on those services. This change obliges foreign tech companies (like streaming, software, etc.) to collect Azerbaijani VAT on B2C sales, leveling the playing field with local providers. [vatupdate.com]
• Saudi Arabia: Implements a new marketplace VAT rule on Jan 1, 2026 for digital services. Online marketplaces (platforms) are made liable for VAT on digital services sold by non-resident vendors to Saudi customers. In practice, if a foreign company sells e-books, apps, or other digital goods via a platform to Saudi users, the platform (if resident or registered in Saudi) must collect the 15% Saudi VAT. This relieves the foreign seller of VAT obligations and is meant to improve VAT collection on cross-border digital sales. [vatupdate.com]
• United Arab Emirates (UAE): Introduces several VAT law amendments effective Jan 1, 2026. Key changes include removing the requirement for self-issued invoices under reverse-charge (making reverse-charge accounting simpler for businesses), setting a clearer time limit on VAT refund claims, and disallowing input VAT deduction on expenses linked to tax evasion cases. Additionally, the UAE is refining rules like the reverse-charge mechanism on specific goods (e.g. as a separate update, UAE will apply reverse-charge on scrap metal sales from January 14, 2026). (These adjustments align the UAE’s VAT Law with international best practices before its upcoming e-invoicing rollout later in 2026.) [vatupdate.com]
• Illinois, USA: Simplifies its remote seller sales tax threshold from Jan 1, 2026. Going forward, out-of-state retailers will only need to register for Illinois sales tax if they exceed $100,000 in annual sales into Illinois (the prior 200 transactions threshold is eliminated). This change (part of Illinois SB 188) aligns with many states’ post-Wayfair standards and eases compliance for small remote sellers by removing the transaction-count criterion. [vatupdate.com]
• Bhutan: Finally implements its long-delayed Goods and Services Tax (GST) on Jan 1, 2026. Bhutan’s GST will be a flat 5% on most goods and services, replacing a patchwork of sales taxes. This modern GST system (originally slated for 2020 but repeatedly postponed) is intended to simplify Bhutan’s tax system and broaden the tax base. The 5% GST will apply to both domestic sales and imports, unifying indirect taxation in the country. [vatupdate.com]
• Brazil: Begins the transitional phase of an ambitious dual VAT system on Jan 1, 2026. Brazil is piloting two new taxes – CBS (Contribuição sobre Bens e Serviços) at 0.9% and IBS (Imposto sobre Bens e Serviços) at 0.1% – which together function like a federal and local VAT to eventually replace certain existing taxes. This 1.0% combined “test” rate in 2026 marks the start of a multi-year transition (2026–2032) to entirely overhaul Brazil’s indirect tax structure. (Businesses will begin reporting these new taxes on invoices; the low initial rate signals a pilot, with rates expected to rise in later years as old taxes phase out.) In addition, from Jan 2026 Brazilian e-invoices (NF-e) must include new data fields for CBS/IBS amounts – a technical update aligned with the tax reform timeline. [vatupdate.com] [fiscal-req…ements.com], [fiscal-req…ements.com]

January 14, 2026 – Targeted UAE Change

• United Arab Emirates (UAE): Effective Jan 14, 2026, the UAE will apply a reverse charge mechanism to scrap metal sales. This means buyers of scrap metal in the UAE (if registered for VAT) must account for VAT on those purchases, rather than suppliers charging VAT. The policy shift aims to combat VAT fraud in the scrap industry. UAE tax authorities announced this niche change in late 2025, giving businesses a short window to prepare. (Other broader UAE VAT amendments kicked in on Jan 1, 2026 as noted above.)

February 1, 2026 – Poland’s E‑Invoicing Mandate

• Poland: Mandatory electronic invoicing (KSeF) begins for large taxpayers on Feb 1, 2026. Companies with annual revenue over PLN 200 million must issue and clear all B2B invoices through Poland’s National e-Invoicing System (KSeF) from this date. This marks the first phase of Poland’s e-invoice rollout: big enterprises are in scope in February, while smaller businesses will follow later (a further phase is slated, likely in 2027, for medium/small taxpayers). Poland’s government finalized the new e-invoicing law in 2025, after an EU derogation, firmly moving the compulsory start to 2026. Status: Confirmed – the legislation is in place, making e-invoicing via KSeF obligatory for large businesses as of Feb 1, 2026. [fiscal-req…ements.com]

February 2, 2026 – Greece’s E‑Invoicing Rollout (Phase A)

• Greece: Mandatory B2B e‑Invoicing launches in Greece on Feb 2, 2026, starting with large enterprises (annual revenue > €1 million). From this date, big Greek-established companies must issue all domestic B2B invoices electronically and report them through the myDATA platform (or certified providers) in real time. Recipients are required to accept e-invoices, eliminating paper for these transactions. This is Phase A of Greece’s plan: it includes large taxpayers and also covers B2B exports (invoices to non-EU customers), while intra-EU B2B invoices remain optional e-invoices for now. A short transition period runs until March 31, 2026, during which traditional invoicing methods can parallel e-invoices for adjustment. Phase B will extend the mandate to all other businesses on October 1, 2026 (see further below). Greece’s parliament passed the enabling law in July 2025, after receiving EU Council approval in March 2025. Status: Confirmed – Greek authorities have officially announced this timeline and issued guidance, so businesses are now preparing diligently. [marosavat.com]

March 30, 2026 – Latvia’s E-Invoicing Platform (Voluntary Phase)

• Latvia: Although Latvia postponed its B2B e-invoicing mandate to 2028, it will take a key step on March 30, 2026. On that date, the Latvian government’s central e-invoicing platform opens for voluntary B2B use. From Jan 1, 2026, Latvia requires electronic invoice data reporting for all B2G transactions (building on the B2G e-invoicing mandate already in place). Then by end of Q1 2026 (March 30), businesses may opt in to send B2B invoices via the official platform, even though it’s not compulsory until 2028. This voluntary period in 2026–27 is meant to help companies adapt and test the system. Proposal/Status: Implemented (voluntary) – Latvia’s law originally set Jan 1, 2026 for mandatory B2B e-invoicing, but a two-year delay was enacted in mid-2025. So in 2026, e-invoicing for B2B is encouraged (not required) while B2G and e-reporting proceed, with full mandate now coming on Jan 1, 2028. [vatupdate.com]

July 1, 2026 – UAE Mandatory E‑Invoicing Launch

• United Arab Emirates (UAE): The UAE will go live with mandatory e-invoicing for B2B and B2G transactions in July 2026. This is part of a three-stage implementation plan: after accrediting providers and updating laws in 2024–25, Stage 3 begins July 2026, when businesses must start issuing electronic invoices and transmitting them through a Peppol-based system to the UAE tax authorities. The UAE’s e-invoicing model will be a decentralized “clearance” system using the OpenPeppol network – invoices will be sent in structured format to buyers and simultaneously reported to the Ministry of Finance/FTA via accredited service providers. B2C invoices are initially out of scope, so paper receipts can continue for consumers. By mandating B2B/B2G e-invoicing, the UAE aims to enhance digital tax compliance and reduce VAT fraud, as highlighted in the official decree-law passed in 2024. Businesses in the UAE have roughly 6 months from the start of 2026 to integrate e-invoice solutions before the deadline. Status: Confirmed – UAE Ministerial Decree No. 16 of 2024 introduced the e-invoicing concept into law, and the government announced the July 2026 go-live on its website. [kpmg.com]

September 1, 2026 – France Mandates E‑Invoicing (Phase 1)

• France: Phase 1 of France’s B2B e-invoicing and e-reporting mandate takes effect on September 1, 2026. From this date, large and medium-sized companies established in France must issue all domestic B2B invoices electronically through approved platforms (either the state portal Chorus Pro or certified private platforms) and report invoice data in real-time to tax authorities. They must also transmit sales data for any transactions not covered by e-invoices (like cross-border B2B and B2C) via the new e-reporting system. Additionally, all French VAT-registered businesses (regardless of size) must be capable of receiving e-invoices from their suppliers by this date. (In practice, every business needs to have an account on a platform to receive structured invoices.) This Sept 2026 phase was originally planned for 2024 but was deferred; it is now backed by an ordinance and pending final confirmation of technical details.
• Phase 2 in France will extend the e-invoicing issuance obligation to small and micro enterprises by September 1, 2027. Status: Confirmed (awaiting final decree) – The French government has legislated the mandate and announced the timeline, though an extension to Dec 2026 is provisionally allowed if systems are not ready. All indications are that Sept 1, 2026 is the target for “big bang” rollout for large/medium firms. [fiscal-req…ements.com]

October 1, 2026 – Greece E‑Invoicing Phase B

• Greece: Phase B of Greece’s e-invoicing mandate starts on October 1, 2026, bringing in all remaining businesses regardless of size. From this date, every Greek-established company must issue structured e-invoices for domestic B2B sales, using either certified service providers or the free AADE tools (myDATA). The transition period for smaller businesses runs until the end of 2026 (December 31), after which traditional invoices are fully phased out. Essentially, SMEs get an extra eight months beyond the large enterprises’ February start, but after Oct 1 no business can legally send paper/PDF invoices for Greek B2B transactions. This completes Greece’s two-stage rollout (Phase A was Feb 2026 for >€1M revenue, Phase B for the rest). By end of 2026, Greece expects nearly universal adoption of e-invoicing in the country’s B2B ecosystem, which works in tandem with its myDATA continuous reporting system (already in place since 2021). Status: Confirmed – as part of the official timeline announced by Greek authorities in 2025. [marosavat.com] [marosavat.com], [marosavat.com]

Beyond 2026 – Notable Future Plans

• Slovakia (2027): Following a public consultation in 2025, Slovakia plans to introduce mandatory structured e-invoicing and real-time invoice reporting for all VAT-registered businesses by January 1, 2027. The first steps begin in 2026 (e.g. legal framework, pilot programs), with full rollout in 2027, aligned with the EU’s “VAT in the Digital Age” initiative. (Slovakia’s system will use a decentralized Peppol model and eventually cover cross-border invoices by 2030.) [fiscal-req…ements.com]
• Latvia (2028): As noted, Latvia postponed its B2B e-invoicing mandate to January 1, 2028. Until then, the use of e-invoicing in B2B remains voluntary (though B2G is already mandatory). From 2028, all Latvian businesses will be required to issue and report e-invoices for domestic transactions, marking the final implementation of what was initially a 2026 plan. [vatupdate.com]
• Germany (2025–2028): Germany is phasing in B2B e-invoicing requirements. As of January 1, 2025, all German businesses must be able to receive electronic invoices in EU-standard format. The obligation to issue e-invoices will follow in stages, with full mandatory e-invoicing by 2028 for all domestic B2B trade. Notably, Germany will prohibit paper or unstructured invoices entirely by 2028. Interim milestones are expected (e.g. possibly a mandate for large companies by 2026, though Germany’s exact phase timeline is pending final law – the enacted law in 2023 allows the government to set phased dates). For now, German firms are preparing for inbound e-invoice compliance in 2025, and waiting for the roadmap on outbound invoicing. [cleartax.com]
• Tunisia (Proposed 2026): Tunisia has proposed to expand its e-invoicing mandate to cover service sector transactions by January 2026. Tunisia already requires e-invoicing for certain industries; this proposal would broaden it to virtually all B2B invoices, including services, from 2026. However, as of late 2025 this change is not yet confirmed into law. It remains a proposal, illustrating Tunisia’s intent to progress in fiscal digitization. Businesses in Tunisia should watch for final approval of this mandate.
• Switzerland (Postponed to 2028): Switzerland had planned VAT rate increases in 2026 but political decisions have postponed these. An anticipated standard VAT hike in January 2026 was deferred to 2028. (Switzerland did raise VAT in 2024 and further changes are now slated for later.) Additionally, Intrastat obligations for arrivals were set to change in Jan 2026 for Swiss trade statistics, but any such modifications will align with the new timeline.