VAT & Indirect Tax Intelligence
VAT news digest
Curated from global sources. Twice-weekly digest, free.
Switzerland is considering legislation to extend the 3.8% reduced VAT rate for hotel accommodation until 1 January 2036, while the standard rate is set to rise to 8.8% in 2026. The current reduced rate expires on 1 January 2028 unless extended, and the Federal Assembly recently blocked any increase beyond 3.8%.
Today's VAT news highlights key developments in Europe and the Americas, with notable rulings from the EU High Court and the French Supreme Court. Updates to VAT regulations in Serbia and guidance on VAT liability for electric vehicle charge points in the UK are also featured. Additionally, a review of Illinois sales tax and recent briefs from Revenue and Customs provide further insight into the evolving tax landscape.
Today's VAT news highlights key developments in the Middle East and Europe, including an extension to the UAE's e-invoicing mandate deadline. Additionally, we examine the intricacies of VAT obligations, deadlines, and requirements in Poland, providing insight for businesses operating in the region. These updates are crucial for companies to ensure compliance with evolving tax regulations in these jurisdictions.
The VATfaqs digest
Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.
No spam · Unsubscribe any time
France's e-invoicing mandate will enter its first phase on 1 September 2026, requiring large companies to issue and receive electronic invoices and submit e‑reporting to the PPF, while small firms must only receive them. The latest External Specifications v3.2, published 30 April 2026, mandate hourly aggregation of PPF submissions by Accredited Platforms and clarify B2G, G2B, and G2G processing. AFNOR standards are slated for final updates by the end of May 2026 to cover additional use cases such as agriculture and food industry.
Illinois imposes a statewide sales tax of 6.25% with local jurisdictions able to add additional rates. Remote sellers with over $100,000 in sales must register and collect tax, and exemption claims require an STAX-1 certificate. Filing can be done electronically via My Tax Illinois or on paper using forms ST‑1, ST‑2, and ST‑44.
This UK government brief outlines HMRC’s position on the VAT treatment of electricity supplied at public electric vehicle charge points, following a First‑tier Tribunal decision involving Charge My Street Limited. It clarifies how such supplies are treated for VAT purposes and provides guidance for suppliers and users.
The French Supreme Court reaffirmed that contractual arrangements determine the recipient of services for VAT purposes in the American Express case. It ruled that issuer commissions are considered services supplied to a non‑EU recipient, allowing the French entity to recover VAT on those commissions. The decision reinforces the importance of economic substance and contractual reality in VAT treatment.
UAE's Ministry of Finance has extended the deadline for large taxpayers to appoint an Accredited Service Provider (ASP) to 30 October 2026, while keeping the mandatory e‑invoicing go‑live dates unchanged. Large businesses must issue e‑invoices via the Peppol network in PINT AE format from 1 January 2027, with smaller businesses and government entities following in July and October 2027 respectively. The amendment also introduces a white‑label mechanism for ASP accreditation, allowing UAE‑based firms to partner with international technology providers.
The UAE Ministry of Finance has postponed the first phase of its e‑invoicing mandate, extending the deadline for large businesses to appoint an Accredited Service Provider (ASP) to 30 October 2026. The broader implementation timeline remains unchanged, with the pilot phase launching on 1 July 2026 and mandatory e‑invoicing via the Peppol network scheduled for 1 January 2027 for large firms, 1 July 2027 for smaller businesses, and 1 October 2027 for government entities.
Poland’s VAT regime requires businesses to file the JPK_V7 XML report by the 25th day of the month following the billing period, with a 12% annual statutory interest on late payments. Small businesses benefit from a turnover exemption that rises from 200,000 PLN to 240,000 PLN in 2026, while refund processing times are shortened to 40 days. Penalties include a 500 PLN fine per JPK error and a 14‑day correction window.
The UAE Ministry of Finance has extended the deadline for appointing Accredited Service Providers (ASPs) for the eInvoicing system to 30 October 2026. Entities with annual revenues exceeding AED 50 million must fully implement eInvoicing by 1 January 2027. Amendments to Ministerial Decisions now allow local firms to partner with third‑party providers, and 32 ASPs have been approved.
The Ministry of Finance has extended the deadline for appointing Accredited Service Providers (ASP) for e‑invoicing to 30 October 2026 for businesses with annual revenues above AED 50 million. The mandatory implementation deadline remains 1 January 2027. The amendment also introduces a white‑label framework enabling UAE firms to partner with international providers.
The May 2026 Global VAT Guide compiles key VAT developments across 12 jurisdictions, highlighting new compliance requirements such as Belgium’s bank account change, Poland’s updated JPK_VAT guidance, and Bulgaria’s removal of the reverse charge clause for goods with installation. It also notes updates to Germany’s Form USt 1 TN and the launch of Belgium’s SME ePortal for quarterly returns. The guide serves as a concise reference for businesses to stay compliant with upcoming regulatory changes.
Utah has enacted legislation extending sales and use tax to a broad range of digital products and subscription-based services effective 1 July 2026. The new rules tax payments for access to digital audio/video, streaming, gaming, e‑books, music, SaaS, and cloud‑hosted software, with a 4.7 % rate and a $100,000 remote‑seller threshold. Existing services under the Multi‑Channel Video or Audio Service Tax Act remain exempt to avoid double taxation.
The article outlines a compliance roadmap for UK firms expanding globally, highlighting the need to register for VAT in each jurisdiction, including Germany's €1 threshold and the EU's ViDA initiative. It details penalties for non‑registration, the adoption of PEPPOL e‑invoicing, and the launch of the Crypto‑Asset Reporting Framework in 2026. UK firms are urged to map their nexus, maintain accurate digital audit trails, and integrate tax engines compatible with EU standards.
Sweden’s Parliament approved a proposal that will allow the Swedish Tax Agency to conduct online audits of businesses’ cloud accounting and VAT records starting 1 April 2026. The new powers remove the ban on internet access, enabling auditors to log in directly to live systems via read‑only profiles or secure APIs, even when the taxpayer does not cooperate. The change also updates evidence rules to support remote examination of electronic records and is part of a broader move toward structured e‑invoicing and digital compliance.
