Global VAT & Indirect Tax News

Greece has introduced a three-layer digital tax framework that combines real‑time reporting via myDATA, a structured B2B e‑invoicing mandate, and an e‑transport system for goods movement. The B2B e‑invoicing requirement becomes mandatory on March 2 2026 for firms with revenue above €1 million and on October 1 2026 for all other businesses, while myDATA has been compulsory since 2021. Early adopters receive significant tax incentives, and non‑compliance triggers steep penalties.

Spain's government introduced a VAT reduction for fuel on 22 March 2026, leading to a 20‑30 cent per litre drop in petrol and diesel prices. Unleaded 95 now costs around €1.62 in Madrid and €1.60 in Barcelona, while diesel remains above €1.83 in some provinces. Despite the relief, fuel costs remain high compared to pre‑crisis levels.

This guide details the Standard Audit File for Taxation (SAF‑T) structure, outlining its four main sections—Header, MasterFiles, GeneralLedgerEntries, and SourceDocuments—and the reference data tables required for compliance. It explains how each transaction must link back to MasterFiles and highlights common validation errors, with specific reference to Luxembourg’s FAIA variant and its tax rates.

On 20 March 2026 Angola’s AGT exempted taxpayers who issue electronic invoices from the obligation to submit SAF‑T files, simplifying compliance for those already on the e‑invoicing system. The exemption covers large taxpayers, government suppliers and, from 1 October 2026, all remaining VAT‑regime taxpayers, while accounting and inventory SAF‑T obligations remain unchanged.

North Macedonia has lowered the VAT on gasoline and diesel from 18% to 10% effective 23 March 2026 for a two‑week period to curb fuel price rises linked to the Middle East conflict. The change is expected to keep gasoline prices stable while diesel will rise modestly by 3–3.5 dinars (€0.04–€0.05) per litre.

Northern Cyprus has temporarily reduced VAT on all fuel products to 0% under the 2025 VAT Rates (Amendment) Regulation, following a Council of Ministers decision published on 18 March 2025. The change covers unleaded petrol, diesel, kerosene, fuel oil and aviation fuel, and is accompanied by a cap on importer and dealer margins at 7.25 TL per litre to curb inflation driven by the Iran conflict.

North Macedonia has temporarily reduced fuel VAT from 18% to 10% to curb price rises triggered by the Middle East conflict. The measure, announced by Prime Minister Hristijan Mickoski, takes effect from midnight on 23 March 2026 and is set to last two weeks. Petrol prices are expected to stay flat while diesel may rise slightly by €0.04‑€0.05 per litre.

India’s GST 2.0 reform, effective 22 September 2025, cut the GST on most small cars to 18% and on larger cars and SUVs to a flat 40%, boosting first‑time buyer shares for major manufacturers. The tax reset has lifted demand in the budget‑friendly segment, with Maruti Suzuki, Hyundai and Tata Motors reporting higher first‑time buyer percentages.

The North Macedonian government announced a reduction of the VAT rate on fuel from 18% to 10% to curb rising fuel prices. Gasoline prices remain unchanged, while diesel will rise by only 3–3.5 denars per litre. The change was approved in an extraordinary meeting on 22 March 2026.

The Allahabad High Court ruled that disputes arising from contractual obligations linked to GST compliance are arbitrable and do not fall under sovereign taxation functions. The court distinguished between challenges to the validity of tax levies and contractual disputes, allowing arbitration to proceed. The decision clarifies that GST compliance issues can be raised as defenses in arbitration proceedings.

Malta opposition leader Alex Borg defended his proposal to cut VAT on restaurants and kiosks from 18% to 7%, arguing it would benefit around 3,000 catering businesses. Finance Minister Clyde Caruana opposed the measure, citing a €140 million cost that would match the 2024 tax cut and only benefit a small sector. Borg accused Caruana of branding restaurateurs as thieves.

Spain has proposed cutting the VAT on fuel from 21% to 10% as part of a €5 billion support package to mitigate the economic impact of the Iran war. The measures also suspend the hydrocarbon excise duty, eliminate a 5% electricity consumption tax, and grant a 20‑cent per litre subsidy for farming and transport sectors. The proposals await parliamentary approval and are aimed at reducing fuel prices by 30–40 cents per litre.

The article explains how UAE’s new e‑invoicing regime requires more than just XML formatting; it demands accurate interpretation of key data fields. Field 5, an 8‑character binary sequence, flags transaction scenarios such as free‑zone or export, while Field 11, the seller’s electronic address, identifies the network endpoint for responses. Correctly mapping these fields is essential for compliance and accurate VAT processing.

UK tribunal judge ruled that public EV charging should be taxed at the 5% domestic electricity rate rather than the 20% commercial rate, based on a de‑minimis threshold of 1,000 kWh per month. The decision, made after a challenge by Deloitte for Charge My Street, applies to B2C usage but leaves B2B charging at 20% pending further guidance. HMRC may appeal, but the ruling could reduce the ‘pavement tax’ on public charging.

Spain announced a €5 billion anti‑crisis package that cuts VAT on fuels, electricity and gas from 21% to 10% and extends the social electricity bonus until December 2026. The plan also provides an 80% toll rebate for exposed industries and 20 cents per litre aid for the agricultural sector.

Spain has announced a temporary reduction of fuel VAT from 21% to 10% as part of an emergency indirect tax package aimed at easing inflation caused by Middle East conflict. The package also suspends excise duties on hydrocarbons, scraps a 5% electricity consumption tax, and mirrors the 2022 VAT inflation shield.

Spain has temporarily lowered VAT on petrol, electricity and natural gas from 21% to 10% as part of a €5bn cost‑of‑living package announced by President Pedro Sánchez. The Royal Decree‑Law will take effect after publication in the Official State Gazette on 21 March 2026, and includes reductions in excise duties and electricity taxes.

Ukraine’s Ministry of Finance unveiled a draft law that will overhaul VAT rules for individual entrepreneurs, digital platforms, and parcel deliveries. Key changes include a new 4 million UAH threshold for mandatory VAT registration effective 1 Jan 2027, a 5 % tax on digital platform income with specific caps, revised military tax rates, and new VAT rules for distance‑sale parcels with exemptions up to 45 EUR.

A UK tax tribunal has ruled that VAT on public EV charging should be reduced from 20% to 5%, a change that could correct the imbalance for drivers without home chargers. The ruling has not yet been adopted by HMRC, and the article discusses how shared charging infrastructure can complement tax reform to accelerate fleet electrification.

The UK guidance explains how to cancel a VAT registration, either online or by post, using form VAT 7 for individual businesses and form VAT 50‑51 for VAT groups. It advises that businesses should not cancel immediately after an insolvency practitioner’s appointment if asset sales are pending, as VAT on those sales must still be reported. The guidance references Notice 700/11 for further details.