Global VAT & Indirect Tax News

South Africa’s National Treasury is unlikely to raise the VAT rate for Budget 2026/27, citing political resistance. Instead, the focus will shift to enforcement and administrative reforms to strengthen the VAT system. A R20 bn tax increase pencilled in for 2026/27 is also expected to be reconsidered based on Sars performance.

Federal Decree‑Law No. 16 of 2025 introduced a five‑year limitation period for VAT refund claims in the UAE, effective 1 January 2026. Businesses must now file returns strategically to avoid permanent loss of input‑VAT credits, with transitional relief until 31 December 2026 for credits older than five years. The change turns VAT compliance into a cash‑flow optimisation tool.

The article examines the Tour Operators’ Margin Scheme (TOMS), highlighting its intended simplification for travel agents and the significant challenges it poses, such as blocked input VAT and inconsistent application across EU Member States. It discusses the scheme’s impact on profitability, competitive distortions, and the European Commission’s public consultation on reforms launched in 2025.

In Poland, when a business vehicle is transferred from commercial use to private ownership, the transfer is treated as a taxable supply and VAT must be charged. The rule applies regardless of whether the original purchase allowed a 100% or 50% VAT deduction, as confirmed by a 2025 tax authority interpretation.

On 8 October 2025, Irish Revenue released a roadmap for implementing the EU's ViDA e‑invoicing and real‑time reporting requirements. The plan phases the rollout, with large corporates required to adopt the system in November 2028, all VAT‑registered businesses in intra‑EU B2B trade by November 2029, and full compliance for all cross‑border EU B2B transactions by 1 July 2030. The definition of a large corporate was clarified on 10 February 2026.

Brazil's new IBS/CBS/IS tax system now treats advance payments as taxable events, requiring businesses to issue a Debit Invoice (NF-e type 06) and report tax in the payment period. The final invoice must reference the advance payments via <gPagAntecipado> to offset tax already paid and avoid double taxation. ERP systems must support advance-payment tracking and the new invoicing requirements.

The UAE’s 2026 corporate tax registration wave introduces new deadlines and penalties, requiring natural persons with over AED 1 million in revenue to register by March 31 2026, companies incorporated in 2026 to complete registration within three months of incorporation, and all free‑zone entities to register regardless of Qualifying Free Zone Person status. A AED 10 000 penalty applies for late registration, and the changes aim to align entity structures with long‑term compliance and operational flexibility.

Greek authorities have postponed the mandatory B2B e‑invoicing go‑live to 2 March 2026, with a two‑month soft‑launch ending in early May. The first wave targets resident large businesses (turnover €1 million+) and covers domestic B2B supplies and exports outside the EU, while EU B2B remains optional. Penalties for non‑compliance include VAT‑based fines and fixed €500/€1,000 penalties, and businesses must submit a commencement declaration to AADE before issuing e‑invoices.

Argentina’s tax authority has introduced a new legislative framework that expands mandatory e‑invoicing to additional sectors and introduces a monthly electronic settlement system. The changes, effective 1 July 2026, also link point‑of‑sale terminals to specific economic activities and feed invoicing data into pre‑filled returns for Simplified Tax Regime taxpayers.

The article explains how indirect tax compliance has evolved from a SaaS-like model to an infrastructure layer, driven by regulatory changes such as e‑invoicing mandates that embed compliance into transactional workflows. It highlights the shift toward networked operating layers, with platforms focusing on connectivity, interoperability, and real‑time regulatory interaction rather than just calculation and filing. The piece notes that regulatory velocity and mandate rollouts are now key drivers of platform selection and market dynamics.

On 13 February 2026 CEN approved updates to EN 16931‑1, modernising the standard for B2B e‑invoicing and ViDA‑driven reporting across the EU. The revision adds mandatory fields such as IBAN details, early‑payment discount and late‑payment charge indicators, and clarifies syntax bindings to UBL and UN/CEFACT CII, requiring businesses to adapt validation and mapping processes for automated compliance.

The article examines how transfer pricing adjustments can trigger VAT when they are considered payment for goods or services, citing the recent Stellantis Portugal Advocate General opinion. It highlights the need for multinationals to conduct structured reviews, document economic rationale, and maintain evidence to mitigate VAT risks, especially in finance and insurance sectors.

Poland’s Ministry of Digitalization has launched a public consultation on a new 3 % digital services tax (DST) that would broaden the existing 1.5 % rate to cover targeted advertising, multilateral digital interfaces and monetisation of user data, while exempting regulated financial services, direct online sales and publishing. The proposal would apply to companies with global revenue of €1 bn and Polish revenue above €6 m (PLN 25 m), and the government expects to raise about €400 m (PLN 1.7 bn) in 2027, roughly 0.3 % of total tax revenue. The article argues that the DST would impose a heavy burden on large multinationals, trigger potential US retaliation, and that a VAT reform would be a more efficient alternative.

Bloomberg Tax’s commentary discusses how transfer pricing adjustments can create VAT exposure, citing recent ECJ cases and a Stellantis Portugal Advocate General opinion. It explains that adjustments tied to specific goods or services may be subject to VAT, while purely profit‑based adjustments may not. The article advises multinationals to conduct structured reviews and maintain documentation to mitigate risks.

The Czech government will reintroduce its Electronic Reporting of Sales (EET) regime from 1 January 2027 under a revised “EET 2.0” format, covering in‑person payments such as cash, card and QR code transactions. Small businesses earning below CZK 1 million can opt for an “EET OFF” exemption or simplified regime, and the Ministry estimates the system could raise an additional CZK 14–15 billion annually in VAT and income tax.

The Advocate General opinion in the Stellantis Portugal case highlights uncertainty over whether transfer pricing adjustments constitute separate supplies of services and thus trigger VAT. The article reviews recent ECJ cases, outlines the need for structured VAT reviews, and stresses the importance of documentation for multinationals, especially those in finance and insurance sectors.

France has rolled out a comprehensive e‑invoicing and e‑reporting regime that applies to all VAT‑registered businesses. Large and intermediate enterprises must send and receive structured e‑invoices from September 2026, with the sending obligation extended to all businesses by September 2027. The system requires real‑time reporting via Approved Platforms and imposes penalties of up to €15,000 per year for non‑compliance.

In December 2025 the Court of Appeal in ’s‑Hertogenbosch ruled that VAT can be deducted on construction costs of a workroom and garage rented to a company, provided the rental is a taxable economic activity. The ruling allows deduction only for the portion attributable to the taxable rental, even if the garage has limited private use. The decision is not final, as a cassation appeal has been filed with the Supreme Court, so businesses should seek VAT advice to ensure compliance.

The Danish Customs and Tax Administration issued a Tax Council Binding Answer (No. SKM2026.87.SR) on Feb. 17, 2026, clarifying the VAT treatment of insurance activities and business transfers for Danish branches of nonresident insurance groups. The answer addresses joint VAT registration conditions, agency agreements between branches, and employee transfer VAT implications, providing much-needed guidance for taxpayers in Denmark’s insurance sector.

Belgium’s cabinet approved a draft royal decree on 14 February 2026 that raises VAT rates on certain goods and services. The decree increases the rate for pesticide and plant protection product deliveries from 12% to 21% and for furnished accommodation and camping pitch services from 6% to 12%.