Global VAT & Indirect Tax News

Multi‑country e‑invoicing is evolving from a compliance exercise into a global business transformation initiative. The article outlines four strategic pillars—selecting a single global supplier, partnering with a tax‑technology expert, ensuring clean ERP‑driven data, and leveraging automation—to turn compliance into operational value. These elements can help multinational organisations reduce complexity, improve accuracy, and unlock broader financial insights.

The French Tax Authority issued guidance on March 4, 2026 clarifying VAT obligations for dropshipping operations that do not use the IOSS. The guidance sets thresholds for import VAT liability, specifies when the seller or consumer is responsible, and requires non‑EU sellers to appoint a tax representative. It also defines the place of taxation for cross‑border distance sales.

On 27 February 2026, Bulgaria’s National Revenue Agency issued Order No. Z‑TsU‑30‑359, updating the SAF‑T schema to version 1.0.2 effective 1 April 2026. The order mandates monthly SAF‑T submissions starting January 2026, with a phased timetable for large, mid‑sized and other taxpayers, and provides a six‑month grace period for the first filing. The required reports include monthly General Ledger, Accounts Payable/Receivable, Sales and Purchase invoices, annual Fixed Assets, and on‑demand Inventory.

Bulgarian National Revenue Agency has issued new guidance amending SAF‑T technical documentation, introducing schema version 1.0.2 as the mandatory format for all SAF‑T submissions. The updated specifications take effect on 1 April 2026, with deadlines set in the Tax and Social Security Procedure Code. Businesses and software providers have until that date to align their systems with the new schema.

Basware’s blog post discusses the lack of a nationwide e‑invoicing mandate in the U.S. and urges finance leaders to build proactive compliance systems before future regulations arrive. It cites that 47 % of U.S. companies have struggled with market expansion due to missed deadlines, 83 % see fragmented compliance as a risk, and only 33 % can scale compliance effectively. The piece highlights the benefits of an invoice lifecycle management approach for real‑time visibility and audit readiness.

The European Court of Justice ruled that Spain’s restriction on VAT deductions for entertainment expenses does not breach EU law. The decision confirms that the country’s entertainment VAT break limit remains compliant with EU regulations. The ruling was issued on March 12, 2026.

France’s 2026 Finance Law introduces stricter penalties for non‑compliance with the upcoming e‑invoicing and e‑reporting regime, effective from 1 September 2026. The law sets €50 fines per non‑approved invoice, progressive penalties for failing to receive e‑invoices, and €500 per missing e‑reporting transmission, capped at €15,000 annually. A first‑offence tolerance allows penalty waivers if errors are corrected within 30 days.

China’s new VAT Law took effect on 1 January 2026, prompting a coordinated overhaul of preferential policies and administrative rules. Import tax incentives for sectors such as pharmaceuticals, R&D, and energy were extended through 2030, while the Hainan Free Trade Port launched a zero‑tariff resident consumption regime. The State Taxation Administration also clarified SME income‑splitting rules, tightening compliance for small‑scale taxpayers.

This guidance outlines the Goods Vehicle Movement Service (GVMS) procedures at the border and during crossings. It details the check‑in process, the requirement for carriers to notify HMRC immediately at departure, and how to verify GMR status. The guidance ensures compliance with automated customs processes for goods vehicles.

France has issued guidance clarifying VAT obligations for dropshippers who do not use the IOSS scheme. The ruling specifies that parcels below €150 are cleared in the final destination Member State and the seller is not liable for French VAT, while parcels above €150 trigger import VAT liability in France. It also outlines conditions under which the customer or seller bears import VAT when goods are delivered within France and requires non‑EU sellers to register and possibly appoint a French tax representative.

The post explains that e‑invoicing success hinges on technical validation, especially schematron rules, rather than just electronic transmission. It highlights how failures in these rules can delay payments, increase DSO, and create manual intervention for AP teams. The author plans to share deeper insights into validation and integration in future posts.

The UAE’s 2026 VAT amendments introduce a five‑year limit on recovering excess input VAT, a transitional window until 31 Dec 2026 for older credits, and a phased e‑invoicing rollout starting July 2026. Companies must review historical balances, comply with stricter documentation, and prepare for mandatory electronic invoicing for B2B and B2G transactions.

Nigeria has extended its e‑invoicing and Electronic Fiscal System (EFS) to medium‑sized and emerging taxpayers. Medium‑size businesses (₦1B–₦5B revenue) must go live on 1 July 2026, while emerging taxpayers (under ₦1B) must go live on 1 July 2027, with enforcement starting 1 January 2027 and 1 January 2028 respectively. The mandate applies to all VAT‑registered businesses issuing invoices for taxable transactions in Nigeria and requires real‑time invoice generation, validation and transmission through the government platform.

The Dutch Ministry of Finance is moving forward with a domestic B2B e-invoicing mandate set to take effect in January 2030, alongside EU-wide ViDA requirements for intra‑community transactions from July 2030. The mandate design was presented to Parliament on 10 March 2026, with legislation expected by mid‑2028 and a two‑year implementation window. Optional domestic e‑reporting may follow in January 2032.

The article explains how usage‑based billing models in AI and SaaS create VAT compliance challenges, including timing of tax points, prepaid credits, hybrid pricing, tiered pricing, and the need for visibility into billing systems. It stresses that tax teams must engage early with product, billing, and finance to manage risk.

The Philippines will require structured e‑invoicing for large taxpayers and e‑commerce businesses from 1 January 2027, with the first phase of the mandate taking effect on 31 December 2026. The requirement is based on the TRAIN Law and BIR Revenue Regulation 011‑2025, but specific structured formats have yet to be defined. A second phase is expected later in 2027 to extend the mandate to all businesses and mandate transmission via a central platform.

Denmark has cancelled the planned OIOUBL 3.0 rollout and announced a new Nemhandel BIS 4 e‑invoicing standard based on EN 16931 and Peppol BIS 4.0. The transition will occur in phases from 2026 to 2030, including a shift to an opt‑out registration model and the final phase of the Digital Bookkeeping Act in 2026.

On 9 March 2026 the First‑Tier Tribunal ruled that the reduced 5% VAT rate on electricity applies to public EV charging points, extending the domestic rate to these supplies. The decision is based on the 1,000 kWh per customer per month threshold and could allow charging providers to claim refunds for up to four years. The ruling is not yet legally binding until HMRC accepts it or the case is finalized.

Italy is reviewing the activation of its "mobile excise" mechanism to offset the VAT windfall caused by rising fuel prices, after oil prices surged above $100 per barrel on 9 March 2026. The government is considering cutting fixed excise duties to balance the increased VAT receipts generated by higher pump prices.

The article explains how the VAT classification of a travel business as an agent or principal determines whether VAT is charged on the full travel supply or only on the intermediary commission. It outlines the key contractual and commercial factors that influence this classification and highlights the financial implications for finance teams, including VAT accounting, input VAT recovery, and the applicability of the Tour Operators Margin Scheme (TOMS).