Global VAT & Indirect Tax News

Basware’s latest blog post outlines ten key performance indicators that distinguish high‑performing organizations in e‑invoicing compliance. The research, based on responses from 400 finance, tax, IT, and compliance leaders, highlights challenges such as limited visibility into evolving mandates and reliance on spreadsheets, and offers practical steps for building a strategic compliance capability.

The Philippine Bureau of Internal Revenue (BIR) has announced that transactions involving indigenous natural gas are exempt from value-added tax (VAT). This decision applies to all such transactions and is intended to support indigenous communities.

Fintua’s blog post outlines how digital platforms and marketplaces must shift to real‑time VAT compliance, driven by EU directives DAC7 and ViDA. It highlights the need for continuous transaction controls, platform liability to collect and remit VAT, and the challenges of reconciling data across jurisdictions such as Mexico and South Korea. The article stresses embedding compliance into systems and cross‑functional collaboration to meet evolving regulatory demands.

The Philippines has advanced the implementation of VAT exemptions for indigenous natural gas, electricity generated from it, and related ancillary services. The exemptions, part of Republic Act No. 12120, will take effect early April 2026 and require certification from the Department of Energy and validation by the Oil and Electric Power Industry Management Bureaus.

The article explains how the place of supply rules for travel services differ from standard B2B and B2C rules, highlighting key exceptions such as accommodation, transport, restaurants and event admission. It details how the Tour Operators Margin Scheme (TOMS) shifts the place of supply to the supplier’s location, offering potential VAT savings for UK and non‑UK businesses. Practical examples illustrate how different scenarios can change whether UK VAT is due.

Italy became the first EU country to mandate electronic invoicing for all VAT‑registered businesses in 2019, expanding the requirement to micro‑businesses in 2024 and introducing FatturaPA v1.9 in 2025. The SDI clearance model has reduced the VAT gap and serves as a benchmark for the EU’s ViDA framework. The current EU derogation expires at the end of 2027, while the consolidated VAT code will take effect on 1 January 2027.

The French e-reporting framework complements e-invoicing by capturing B2C, cross-border B2B and certain payment transactions through Flow 10 (F10). Flow 6 (F6) confirms acceptance or rejection of the reporting file. Reporting frequency and deadlines vary by VAT regime, with standard monthly taxpayers submitting transaction data three times a month and payment data once, all due 10 days after each period.

Germany’s KoSIT confirms progress on XRechnung 4.0, aligning with the forthcoming EN 16931‑1:2026 standard. The article outlines key milestones: the EN 16931 release in March 2026, XRechnung 4.0 specification in the second half of 2026, mandatory electronic invoicing for all German businesses by 2028, and national and intra‑community VAT reporting from July 2030.

This article provides a comprehensive, region‑by‑region overview of e‑invoicing requirements, detailing mandatory formats, transmission protocols, and deadlines for each country. It highlights key national mandates such as Italy’s FatturaPA, France’s Factur‑X, Germany’s XRechnung, and India’s JSON‑based IRP system, offering a practical guide for businesses operating across borders.

Poland has made e‑invoicing mandatory for all VAT‑registered businesses through its KSeF platform, effective February 2026 for large taxpayers and April 2026 for SMEs and foreign entities. The new system integrates with the existing JPK SAF‑T reporting framework, requiring KSeF identification numbers in VAT returns and imposing penalties for non‑compliance. The rollout also mandates KSeF IDs in bank transfers from August 2026 and extends to micro‑entrepreneurs from January 2027.

The Fintua blog post discusses OECD's latest updates on indirect tax, highlighting the shift toward real‑time, data‑driven administration, e‑invoicing, and digital reporting across jurisdictions. It covers the rollout of e‑invoicing and B2C digital services in EU countries, the UAE's expansion to non‑resident entities, and the development of the DCTR toolkit. The article emphasizes collaboration between businesses and tax authorities and the role of AI in tax compliance.

The article discusses how e‑invoicing transforms VAT recovery on travel and entertainment expenses, highlighting the shift from manual, employee‑driven processes to automated, XML‑based workflows. It outlines the challenges of identifying T&E invoices, preventing duplicate payments, and the varying complexities across EU jurisdictions, and offers practical guidance for businesses to implement classification logic and align e‑invoicing with ERP transformations.

The UAE Ministry of Finance released e‑invoicing guidelines in February 2026, clarifying that intra‑VAT group transactions fall within the e‑invoicing scope and introducing a 24‑month grace period starting 1 January 2027. The phased rollout begins on 1 January 2027 for Phase 1 and 1 July 2027 for Phase 2, with the grace period calendar‑based, giving Phase 1 entities full relief but only 18 months to Phase 2 entities. Corporate tax groups receive no such relief.

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.