VAT & Indirect Tax Intelligence
VAT news digest
Curated from global sources. Twice-weekly digest, free.
The article lists the 2026 VAT registration exemption thresholds for 32 European countries, highlighting recent changes such as Hungary’s increase to 20 million HUF, Poland’s rise to 240,000 PLN, and Romania’s jump to 395,000 RON. It also notes Belgium’s pending 30 000 € threshold and Switzerland’s highest absolute threshold of CHF 100,000.
Today's VAT news highlights key developments in European tax regulations, including Germany's shift to an opt-in VAT grouping system and the EU's imposition of an e-commerce customs duty fee. Additionally, we explore the French e-invoicing mandate and its implications for businesses. Meanwhile, African countries such as Nigeria are also implementing tax reforms, including automated tax administration systems and proposed VAT amendments to support healthcare services.
Today's VAT news highlights key developments in Europe, Africa, and the Middle East, including updated regulations on VAT for food supplements and VAT group members in the EU. Additionally, changes to VAT refunds and e-invoicing systems are being implemented in various regions, such as the UAE and France. These developments have significant implications for businesses and individuals, with potential impacts on costs and compliance requirements.
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France’s e‑invoicing reform mandates all VAT‑subject businesses to use an approved platform from 1 September 2026, with SMEs joining in 2027. The article explains the difference between accreditation and live invoice exchange, outlines penalties, and highlights the possibility of a 1 December 2026 deferral.
Sweden has submitted a ViDA VAT amendment bill to Parliament, which will enter into force on 1 January 2027. The bill updates cross‑border VAT rules, reporting deadlines, expands special regime scopes, introduces new output‑VAT accounting rules for electronic interfaces, and revises input‑VAT deduction limits for certain non‑EU taxpayers.
Illinois Department of Revenue has launched a Remote Retailer Tax Amnesty Program for 2026, allowing remote retailers without physical presence to settle unpaid sales tax without penalties or interest. The program runs from August 1 to October 31, 2026, and offers simplified tax rates of 9% for general merchandise and 1.75% for qualifying items, provided retailers meet specific gross‑receipt thresholds.
Germany proposes to replace its automatic VAT grouping regime with an opt‑in system effective 1 January 2029. The reform requires formal application, expands eligibility to partnerships, and introduces retroactive non‑recognition and increased scrutiny of intra‑group transactions. Businesses must plan ahead to assess the impact on compliance and cash flow.
The EU will introduce a fixed customs duty fee of EUR 3 per distinct item for low‑value B2C imports from outside the EU, effective 1 July 2026. The previous duty relief for consignments valued up to EUR 150 will end, and the Commission has issued guidelines to help vendors comply.
France will enforce a comprehensive e‑invoicing and e‑reporting mandate from 1 September 2026. Large and intermediate‑sized companies must issue e‑invoices immediately, while SMEs and foreign firms begin on 1 September 2027. The guidance outlines size thresholds, real‑time reporting requirements, and the penalty regime during the pilot phase.
FIRS has announced a phased e‑invoicing and e‑reporting mandate in Nigeria, with the second wave becoming mandatory on 1 July 2026 for taxpayers with annual revenues between N1 bn and N5 bn. The authority will also introduce Peppol-based invoicing, implement the Automated Tax Administration System (ATAS) for audits, and impose soft‑landing penalties effective 2027. The final wave for small enterprises is planned for 1 July 2027.
Egypt’s Tax Authority has drafted VAT amendments that lower the rate on medical devices to 5% from 14% and exempt manufacturing inputs for dialysis equipment and kidney filters. The changes aim to reduce costs for healthcare providers and boost domestic medical manufacturing.
The Tanzanian government announced a VAT exemption for the construction of affordable houses costing up to 50 million Tanzanian shillings. The measure aims to attract local and foreign investment and increase private sector participation in housing development. The exemption applies to any housing project within the specified cost limit.
Finland’s 2026 VAT regime includes a new reduced rate of 13.5% for foodstuffs, animal feed and certain agricultural products, effective January 2026. Finnish businesses must register for VAT when turnover exceeds €15,000, while non‑resident firms must register on any taxable sales with no threshold. EU B2C distance sellers face a €10,000 cross‑border sales threshold that triggers Finnish VAT registration or OSS use, and the reverse charge mechanism allows foreign suppliers to avoid registration if all sales are B2B reverse charge.
The BIR issued a circular on June 2, 2026, tightening VAT enforcement for overseas digital service providers in the Philippines. The circular mandates that providers collect 12% VAT on payments received before the regime’s June 2025 effective date, and requires non‑resident providers to register and file returns even for VAT‑exempt B2C supplies. It also clarifies VAT treatment for platform operators and digital advertising services.
The UK Court of Appeal on 12 June 2026 ruled that Bolt cannot use the Tour Operators Margin Scheme (TOMS) and must charge full 20% VAT on the entire fare. This reverses earlier tribunal decisions that had allowed Bolt to apply TOMS. The ruling has implications for other ride‑sharing operators such as Uber.
This FAQ explains the differences between Delivered Duty Paid (DDP) and Delivered Duty Unpaid (DDU) for cross‑border merchants, outlining who pays duties, the impact on customer experience, and the technical requirements for each option. It highlights that DDP offers cost certainty and faster customs clearance, while DDU can lead to refused deliveries and additional costs. The guide also details FlavorCloud’s guaranteed DDP service, which locks landed cost at checkout, and the prerequisites for product eligibility such as HS codes, country of origin, and weight.
