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Spain’s tax authority released technical guidance for the upcoming SPFE e‑invoicing mandate, detailing a phased rollout: large companies by Oct 2027, small businesses by Oct 2028, and self‑employed by Oct 2029. The guidance covers the EN 16931:2026 UBL 2.5 standard, API and security requirements, and a developer sandbox available from Oct 2026.
In today's VAT news, European countries are implementing changes to value-added tax regulations, including a VAT cut on children's meals aimed at reducing costs for families. Meanwhile, Germany is introducing stricter VAT group rules to enhance compliance and prevent abuse. Additionally, Spain has released a technical update for its B2B Crea y Crece e-invoice e-reporting system, further streamlining electronic invoicing processes.
Today's VAT news highlights significant developments in European and international taxation, including the implementation of automated VAT assessments and e-invoicing systems in several countries. Italy and Sweden are leading the charge in Europe with new measures to enhance tax compliance, while the Dominican Republic has introduced mandatory e-invoicing in the Americas. Additionally, proposed taxes on e-commerce parcels in Austria and VAT increases in Ukraine in exchange for EU loans demonstrate the ongoing evolution of VAT policies worldwide.
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The International Monetary Fund has urged Pakistan to increase its standard General Sales Tax (GST) rate from 18% to 19% for the 2026-27 fiscal year, citing a tax shortfall. The IMF also proposes raising the GST on hybrid vehicles from 8.5% to 18% and introduces a fixed‑tax scheme for retailers with turnover up to Rs200 million. While the government has resisted the hike, the IMF estimates the 1% increase could raise Rs250‑300 billion in revenue.
The Supreme Court has upheld a 28% GST on online gaming, applying it retrospectively to curb unregulated wagering. The ruling targets real‑money games and aims to aid investigations into money laundering. The decision marks a significant shift in India's approach to digital gambling.
The German Federal Ministry of Finance (BMF) issued revised template forms for VAT reverse‑charge and registration purposes effective 9–23 April 2026. The updates remove the service‑seal field and the phrase “This letter was machine‑generated and is valid without signature,” and set a maximum validity of three years for the certificates. Forms USt 1 TH, USt 1 TG and USt 1 TQ can be issued on application or by authority; USt 1 TS and USt 1 TN only on application.
Ukraine’s parliament has exempted the supply of ground‑based unmanned ground vehicles (UGVs) to the Defense Forces from VAT. The exemption, enacted via Bill No. 15259, aims to accelerate delivery of logistics and medical evacuation equipment. The law takes effect from 28 May 2026.
Italy has amended its 2026 barter VAT rules, replacing the cost‑based valuation model with a contractual value approach. The change, effective 1 January 2026, requires the taxable amount to reflect the parties’ agreed monetary value but not fall below the supplier’s direct costs, and applies retroactively to contracts from that date while protecting earlier invoices.
The Isle of Man will lower VAT on children’s meals and family entertainment tickets from 20% to 5% between 25 June and 1 September 2026, easing costs for families. The change also applies to cinema, theatre, show tickets and attraction admissions. Additionally, red diesel duty will be cut from 10.18p to 6.48p per litre from 15 June 2026.
Germany's Federal Ministry of Finance has issued a new guidance letter effective 1 April 2026 that narrows the scope of intra‑group VAT exemptions for Organschaft. The update expands situations where intra‑group transactions may trigger VAT, particularly for supplies linked to non‑economic activities, and allows taxpayers to use the old approach until 31 December 2026. Businesses must reassess charging models, input VAT recovery and ERP logic for German VAT groups.
Spain's tax authority AEAT has outlined technical details for the upcoming Crea y Crece B2B e‑invoicing rollout, including a hybrid 5‑corner architecture and multi‑layer validation requirements. The order will enter force in October 2026, with the public platform live in August 2027 and mandatory e‑invoicing for high‑turnover firms from October 2027, expanding to all businesses by October 2028. Payment status reporting will extend to smaller entities in October 2029.
Ireland is set to introduce a comprehensive e‑invoicing mandate in phases, with B2B reception mandatory from November 2028 and full ViDA compliance by July 2030. The mandate will rely on the Peppol network, using Peppol BIS 3.0 for B2B and Peppol BIS/PINT‑EU 4.0 for cross‑border e‑reporting. Revenue will issue detailed guidance ahead of each phase.
The Supreme Court of Korea ruled that fresh flower decorations supplied at hotel wedding venues are a provision of services, not a supply of goods, and therefore subject to VAT. The ruling overturned a lower court decision that had treated the decorations as exempt unprocessed agricultural products. As a result, the tax office assessed significant VAT amounts for Josun Hotel & Resort for 2018.
The UK Chancellor announced temporary VAT cuts from 20% to 5% on family attractions during school holidays, effective from the end of June to 1 September 2026. Additional measures include free bus journeys for under‑16s in England in August, a 12‑month HGV road tax holiday, and a one‑third reduction in red diesel duty until the end of 2026. Business leaders argue the cuts are insufficient to support hospitality and other sectors.
The UK government has introduced a temporary 5% VAT rate on admission to certain family attractions, effective from 25 June to 1 September 2026, replacing the standard 20% rate. The cut covers museums, planetariums, heritage sites, nature reserves, botanical gardens, children’s meals and performance‑venue tickets marketed for children, but excludes seasonal passes beyond 1 September unless priced similarly to day tickets. Charities already exempt from VAT do not benefit unless they operate through a VAT‑registered trading subsidiary.
Kazakhstan has launched a pre‑filled VAT return system that automatically populates Form 300.00 using data from its Electronic Invoice Information System, taxpayer accounts and customs declarations. The system updates VAT return data on a T+1 basis, requiring VAT credit notifications to have a ‘confirmed’ status. Businesses must ensure accurate and timely submission of invoices and credit adjustments to avoid errors in the pre‑filled returns.
