Global VAT & Indirect Tax News

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.

The Norwegian Tax Appeals Board ruled that data centre services supplied to non‑residents are not fully exported services; the portion involving physical storage, monitoring, power and infrastructure must attract Norwegian VAT. The decision rejects the view that such services are entirely remote and VAT‑exempt, and provides analysis that may interest other jurisdictions.

The blog post summarizes a session at ELEVATE 2026, emphasizing that VAT automation is now essential for global operations. It outlines practical steps—data stabilization, standardization, pilot automation, and continuous optimization—and highlights the role of co‑sourcing and AI in elevating tax teams from operators to strategic advisors.

Morocco has introduced a new VAT regime for non‑resident digital service providers, requiring quarterly registration, reporting and payment via a dedicated electronic platform effective 11 June 2026. The 20 % VAT rate applies to B2C digital services, with detailed transaction‑level reporting mandated within 30 days of each quarter. B2B digital services remain nil‑rated for foreign suppliers, with reverse charge applied by Moroccan VAT‑registered businesses.

Norway will introduce mandatory B2B e-invoicing in two phases: issuers must start sending e-invoices from 1 January 2027, and all businesses must receive them by 1 January 2030. The Ministry of Finance also proposes that electronic accounting systems be mandatory from 2030 to support automatic booking. These changes follow a July 2025 consultation and reflect Norway’s push toward digital invoicing.

The UK government has introduced the Value Added Tax (Refund of Tax to Great British Nuclear) Order 2026, allowing companies designated under section 317 of the Energy Act 2023 (GBE‑N) to claim VAT refunds on services that support their non‑business activities. The order was published on 18 March 2026 and provides a statutory framework for these refunds.

Slovakia will enforce a 2027 e‑invoicing mandate for B2B and B2G domestic transactions, requiring invoices to be issued and received in the EU EN16931 structured format and reported in real‑time to the Finance Administration. The mandate will roll out in stages, with a voluntary transition in early 2026 and full compliance by 1 January 2027, while intra‑community e‑invoicing will become mandatory from July 2030. Additional changes include tax‑registration reforms effective 1 January 2026 to curb fraud and the replacement of control statements with the new e‑invoicing regime.

On 19 February 2026, Togo will impose an 18% VAT on foreign digital services supplied to consumers, following the 2026 Finance Law and a ministerial order. Digital platforms must collect and remit VAT and report annual income, with a 10% penalty for non‑compliance. The regime also introduces mandatory certified e‑invoicing for VAT‑registered businesses.

A UK tribunal decision in 2024 may allow U.S. biopharma firms with UK operations to claim VAT refunds on prior NHS sales, potentially unlocking up to £2.5 billion. The ruling is under review by the Upper Tribunal, with a judgment expected within the next three to four months. Companies must notify HMRC and register protection claims now to preserve their right to recover VAT within a four‑year window.

Fintua’s blog post reviews Ireland’s upcoming e‑invoicing mandate under the EU’s Digital Reporting Requirements, outlining the phased implementation schedule and the planned adoption of Peppol. It highlights the 10‑day invoicing window, the 2030 compliance deadline, and the role of AI in ensuring data quality. The piece serves as a practical guide for Irish businesses preparing for the new digital VAT regime.

Malawi will extend VAT to non-resident digital services from 1 April 2026, requiring foreign providers to charge the standard 17.5% rate. The new regime, announced in the 2026/27 Budget Policy Statement, also doubles the VAT registration threshold to MWK 50 million and covers services such as streaming, online advertising, e‑learning and digital content platforms.

Norway will require all bookkeeping-obligated businesses to issue structured B2B e-invoices from 1 January 2027, with an exemption for entities with less than NOK 50,000 turnover. Digital bookkeeping will become mandatory from 1 January 2028, obliging firms to use accounting systems capable of electronic invoice processing. The tax authority will report on potential next steps, including B2C e-invoicing and e-receipts, before the end of 2026.

China’s new VAT Law took effect on 1 January 2026, prompting a series of administrative releases that align preferential regimes, customs treatment, and reporting obligations. The guidance tightens SME VAT incentives, extends cross‑border e‑commerce import VAT exemptions until 2027, and introduces new import VAT incentives for strategic sectors that run until 2030. Multinational groups should review compliance and documentation to meet the updated thresholds and reporting requirements.

Denmark is transitioning its NemHandel e‑invoicing system from the domestic OIOUBL format to the Peppol BIS standard, with full migration targeted for mid‑2029. The shift aligns with the 2030 VAT in the Digital Age reforms that mandate e‑invoicing for intra‑community transactions and supports the ViDA Digital Reporting Requirements. Businesses will need to adapt to a phased coexistence period before Peppol BIS becomes the dominant format.

The Xyrality case (C‑459/24) clarifies that e‑commerce platforms can be treated as suppliers for VAT purposes, meaning VAT is due on the full transaction amount, not just the platform fee. The ruling confirms that Article 28 creates a deemed supply chain when an intermediary acts in its own name but on behalf of the actual provider, and that Article 9a’s presumption cannot be rebutted if the platform authorises the charge, delivers the service, or sets the general terms. Platforms dominating the customer relationship must therefore reassess their VAT obligations.

The Bahamas government will exempt all unprepared food items from VAT effective 1 April 2026, giving consumers zero VAT at the point of sale. Merchants have a three‑month window to adjust their point‑of‑sale and accounting systems, and the exemption means importers and retailers cannot claim input credits. The move follows earlier VAT rate cuts and aims to reduce consumer costs and administrative complexity.

EU member states are pushing for a €2 customs handling fee on low‑value parcels (below €150) to take effect on 1 July 2026, ahead of the planned 1 November 2026 date. An interim €3 customs levy will also apply from 1 July 2026 until March 2028, while the €150 duty threshold is slated for removal under the 2028 customs reform. The fee could be reduced to €0.50 for importers registered with the Trust and Check Trader scheme.