Global VAT & Indirect Tax News

The Federation of Bosnia and Herzegovina’s House of Representatives adopted a draft law on fiscalization of transactions, establishing obligations for electronic invoicing, a real‑time transaction recording system, monitoring mechanisms, and criminal provisions to curb tax evasion. The law builds on the 2009 fiscal systems law and aims to modernize tax compliance across the Federation.

Chile’s Internal Revenue Service (SII) has issued new resolutions in 2025 that expand electronic invoicing obligations. The updates require digital platform operators to verify seller registrations, mandate electronic receipts for all in‑person sales, and introduce a Delivery Note Registry with detailed transport information. Electronic invoicing has been mandatory since February 1 2018, and the SII continues to enforce validation and acceptance timelines.

The German Ministry of Finance clarified rules on input VAT deductions for subsidized service providers that operate at persistent loss. The BMF Letter states that such providers cannot deduct input VAT for services unrelated to taxable activity and must satisfy a two‑step test linking remuneration to performance and confirming economic activity. The letter also amends the VAT Application Decree.

Poland’s Ministry of Finance and Economy has signed four executive regulations that finalize the technical and organisational aspects of the National E‑Invoicing System (KSeF). The new rules set exemptions for certain services, change simplified invoice handling, and introduce mandatory JPK_VAT reporting with KSeF identifiers from 1 February 2026. Businesses must update their accounting and ERP systems to comply with the new authorisation, authentication and data‑scope requirements.

The article explains how withholding VAT regimes are used in Mexico and Argentina to collect VAT on digital services supplied by non‑resident providers. It details the rates and responsibilities of platforms, intermediaries, and customers, and notes that withholding can sometimes replace registration for foreign suppliers.

The Philippine Court of Tax Appeals issued a decision on Jan. 16, 2026 in CTA Case No. 10570, ruling that yearbook printing is VAT‑exempt because yearbooks qualify as books under Philippine law. The ruling invalidated the Commissioner of Internal Revenue’s assessments for deficiency income tax and VAT for the taxable year 2013, which had been based on BIR Ruling No. 421‑2013. The decision clarifies the validity of such assessments and the treatment of yearbook sales for VAT purposes.

The Federation of Bosnia and Herzegovina has approved a bill that would make B2B and B2G e-invoicing mandatory via a Central Platform for Fiscalisation (CPF) and require B2C transactions to use approved Electronic Fiscal Systems (EFS). The proposal aims to align with the EU ViDA model by July 2030 and has moved from the Lower House to the upper house for final approval.

Zimbabwe’s tax authority has clarified that non‑resident digital service providers must remain VAT‑registered if their annual turnover from services consumed in Zimbabwe exceeds USD 25,000, even after the introduction of Digital Services Withholding Tax (DSWT). The DSWT withholding amount is credited against the supplier’s VAT liability, but all compliance obligations, including fiscalisation, continue to apply. The fiscalisation mandate has been live for all VAT‑registered taxpayers since June 2025.

A non‑binding opinion from an EU Court of Justice adviser clarifies that Stellantis Portugal SA’s practice of adjusting sales prices for dealerships does not constitute a service and therefore is not subject to VAT. The opinion adds to a growing body of guidance on VAT treatment of transfer‑pricing adjustments and highlights the European Commission’s focus on closing the €128 billion VAT gap reported in 2023.

HMRC has reset UK VAT grouping rules, allowing overseas establishments to be treated as part of a UK VAT group and removing EU case law such as Skandia and Danske Bank. The new policy reduces cross‑border VAT friction and invites businesses to correct over‑declared VAT, while expanding HMRC’s discretion to deny grouping where it sees collection risk or distortive outcomes.

The article discusses how governments across the GCC, Europe and Asia are moving toward real‑time clearance and continuous transaction control (CTC) models for e‑invoicing, with the UAE accelerating adoption of PEPPOL and FTA‑aligned reporting. It highlights that by 2026 CFOs will need new roles such as Tax Data Engineers to manage structured tax data pipelines and real‑time compliance. The piece outlines the operational shift from manual reconciliation to data‑oriented finance functions and the importance of interoperable e‑invoicing systems.

Belgium has amended its VAT Code to introduce a fifteen‑year adjustment period for durable renovation works that exhibit characteristics comparable to immovable property, replacing the previous five‑year period for such works. The change, approved on 21 January 2026, will take effect on the day the law is published in the Official Gazette and applies retroactively to works whose adjustment period is still running. The amendment aims to align Belgium’s rules with EU law after the Court of Justice’s Drebers ruling.

The Finance Bill 2026/27 will cut the input VAT for agricultural exporters from 16% to 8%, remove excise duty on packaging materials such as kraft paper, and scrap export promotion levies. It also allows faster offsetting of VAT refunds, offers special tax treatment for long‑standing 100% exporters, and rationalises regulatory levies to ease logistics costs. The bill is scheduled to be tabled in Parliament in March 2026.

This blog explains the key terms and technical requirements for Belgium’s mandatory e‑invoicing regime starting 1 January 2026. It covers the Peppol network, Access Points, UBL/BIS 3.0 standards, and how Banqup helps companies comply without writing XML code.

Greece will gradually enforce mandatory B2B e‑invoicing, starting 2 February 2026 for high‑revenue firms and 1 October 2026 for all other entities. The new rules cover all B2B transactions, sales to non‑EU entities (excluding retail) and public‑sector contracts, requiring use of the IAPR’s Timologio platform. Businesses should prepare early to comply with the new invoicing framework.

Poland is preparing for the transition from KSeF 1.0 to KSeF 2.0, with key dates set for the production environment maintenance and the go‑live of the new system. Taxpayers using KSeF 1.0 can issue invoices until 26 January 2026, after which a maintenance break runs until 31 January. From 1 February 2026, KSeF 2.0 will be live and mandatory e‑invoicing will begin for large taxpayers, and all KSeF‑in‑scope taxpayers must be ready to use and receive invoices in the new system.

The UK government announced a £92m Places of Worship Renewal Fund on 22 Jan 2026, replacing the £23m Listed Places of Worship Grant Scheme that had allowed churches to reclaim VAT on repairs. The new fund removes VAT relief, meaning churches will now have to pay the standard 20% VAT on repairs, with the previous scheme having capped VAT‑exempt repairs at £25,000. The move aims to align churches with other heritage assets but raises concerns about the financial burden on congregations.

The European Court of Justice ruled that Spain cannot automatically deny cleaning cooperatives a VAT exemption for services supplied to educational and healthcare institutions. The decision confirms that such co‑ops are entitled to the exemption, preventing blanket denial by Spanish authorities. The ruling was issued on 22 January 2026.

This article outlines the tax, National Insurance and VAT implications of Christmas gifts and gift vouchers for employees and customers in the UK. It explains the trivial benefit threshold of £50, the £300 cap for directors, and the VAT treatment for gifts over £50. The guidance also covers reporting requirements such as P11D and the conditions for tax‑deductible promotional gifts.

This article examines the constraints on cross‑border VAT grouping in Sweden, addressing both EU member states and non‑EU jurisdictions. It outlines the legal framework and practical implications for businesses operating across borders.