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

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

Source: innovatetax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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