VAT & Indirect Tax Intelligence
VAT news digest
Curated from global sources. Twice-weekly digest, free.
Italy requires all B2B, B2C and B2G invoices to be submitted electronically via the Sistema di Interscambio (SDI) in FatturaPA XML format. The mandate, effective since January 2019, imposes a 12‑day transmission window, mandatory digital signatures, and penalties of 90‑180% of the VAT amount for non‑compliance. Cross‑border transactions must also be reported through SDI’s Esterometro system.
In today's VAT update, we highlight key developments across Europe, Africa, and APAC, including the VAT implications of transfer pricing adjustments and recent changes to VAT relief and refund systems in Ukraine and Egypt. Additionally, notable court rulings and regulatory updates in countries such as India and Belgium are also discussed. These changes aim to improve tax efficiency and clarify existing rules, with significant implications for businesses operating globally.
Today's VAT news highlights key developments in Europe and the Americas, with notable rulings from the EU High Court and the French Supreme Court. Updates to VAT regulations in Serbia and guidance on VAT liability for electric vehicle charge points in the UK are also featured. Additionally, a review of Illinois sales tax and recent briefs from Revenue and Customs provide further insight into the evolving tax landscape.
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Austria is proposing a €2 delivery tax on B2C e-commerce parcels from large sellers, effective 1 October 2026, payable by the seller and triggered upon payment acceptance. The measure targets sellers with >€100 million in Austrian distance sales and aligns with the EU's upcoming €3 customs levy on low-value imports from 1 July 2026. Consultation on the proposal runs until 26 May 2026.
Ukraine will abolish its VAT exemption for imported parcels under €150 from 2027, requiring marketplaces to collect 20% VAT at point of sale. Citizen‑to‑citizen parcels under €45 will remain exempt if free and not for resale. The reform, based on draft laws 15112‑D and 12360, is expected to raise about UAH 10 billion annually.
Egypt’s Tax Authority has issued new executive instructions establishing a unified VAT refund framework. The new system introduces an electronic completion platform, shortens refund processing to 20 days, and sets a two‑day review period with email notifications for missing documents. The framework also prioritises white‑listed companies and requires electronic invoice statements for refund claims.
The Supreme Court dismissed Uttar Pradesh’s attempt to levy a 21% state VAT on natural gas transported from Andhra Pradesh to Uttar Pradesh, ruling the transaction is an interstate sale governed by the Central Sales Tax Act. The decision upheld a 2012 Allahabad High Court judgment that quashed UP’s assessment orders against Reliance Industries, Tata Chemicals and IFFCO. The ruling confirms that gas transported through common pipelines remains an interstate sale even when co‑mingled.
Belgium’s FPS BOSA has released updated guidance on its mandatory 2026 B2B e-invoicing regime, clarifying invoice rejection, reverse charge wording, and Peppol delivery monitoring. The update introduces new rules for handling incorrect recipients, softens automatic rejection of reverse charge invoices, and confirms that suppliers must be registered in Peppol to receive self‑billing documents.
The Delhi government has lowered the VAT on Aviation Turbine Fuel (ATF) from 25% to 7% for airlines operating in the capital. The reduced rate will apply for an initial six‑month period, providing relief to airlines and passengers amid rising fuel costs.
Slovenia’s parliament approved emergency legislation that temporarily cuts VAT on a basket of staple foods to 5% and on household energy supplies to 9.5% for nine months, effective 17 May 2026. Businesses must update invoicing, pricing and ERP systems to reflect the new rates and ensure compliance with digital reporting requirements.
Egypt’s Tax Authority has issued new executive instructions to streamline VAT refund processing. The reforms cut the refund period to 20 days, shorten review time to two working days, and set clear notification and document‑submission deadlines. The changes aim to improve speed, accuracy and digital integration for taxpayers.
The Delhi government has reduced the VAT on aviation turbine fuel (ATF) from 25% to 7% effective 16 May 2026. The change applies to airlines purchasing fuel at Delhi airports, providing significant cost savings for the aviation sector.
Kenya's Finance Bill 2026 expands VAT coverage to include a wide range of digital financial and payment processing services, effective 1 July 2026. Commissions earned by payment service providers on these services will be standard-rated for VAT, replacing previous exemptions. The change requires PSPs to reassess VAT treatment, update invoicing systems, and review contracts and pricing structures.
Morocco’s General Directorate of Taxes (DGI) has launched a new online platform for collecting VAT on remote digital services. Non‑resident companies providing digital services to Moroccan customers must register, obtain a tax ID, file quarterly declarations and maintain transaction registers from 11 June 2026.
Poland’s Ministry of Finance has drafted a regulation aligning foreign VAT refund procedures with the KSeF mandatory e‑invoicing platform. The draft requires foreign businesses to reference KSeF invoice identification numbers in refund claims, with transitional measures for claims before 1 January 2026. EU and non‑EU businesses must provide KSeF references or supporting invoice documentation depending on availability.
Switzerland is considering legislation to extend the 3.8% reduced VAT rate for hotel accommodation until 1 January 2036, while the standard rate is set to rise to 8.8% in 2026. The current reduced rate expires on 1 January 2028 unless extended, and the Federal Assembly recently blocked any increase beyond 3.8%.
