Global VAT & Indirect Tax News

Latvia has increased its Intrastat reporting thresholds for 2024, raising the Arrivals threshold to €380,000 and the Dispatches threshold to €220,000. These new thresholds will take effect on 1 January 2026, aligning Latvia with updated EU Intrastat reporting requirements.

The article discusses how indirect tax functions are evolving from compliance to strategic partners, driven by AI, data, and new regulatory demands such as the OECD’s Pillar Two and the EU’s VAT in the Digital Age (ViDA). It highlights the impending mandatory e‑invoicing for Irish businesses in 2028 and the operational challenges companies face in preparing for real‑time reporting and data integration.

Romania has extended its eFactură e‑invoicing regime, delaying full enforcement for SMEs until 1 July 2026 and adding new obligations for non‑resident customers under Emergency Ordinance 89/2025. B2C transactions will be mandatory from 1 January 2025, with simplified invoices required, while penalties for non‑compliance are postponed until 31 March 2025. The country also launched full pre‑clearance submissions in July 2024 and introduced e‑transport reporting in July 2022.

Venezuela’s official gazette published Decree No. 5,207 on Jan. 9, extending the temporary VAT exemption for import and sale of hydrocarbon fuels and additives until Jan. 11, 2027, effective from Jan. 12, 2026. The decree applies to state, state‑owned, mixed‑ownership, and private companies under the Organic Hydrocarbons Law, establishes documentation requirements, outlines customs procedures, and mandates semi‑annual evaluation by SENIAT.

The Philippine Court of Tax Appeals (CTA) issued a decision on Jan. 23, 2026 (Case No. 10626) clarifying the treatment of unutilized input VAT refunds on zero‑rated export sales. The decision addresses the denial by the Commissioner of Internal Revenue, which was based on a failure to substantiate the claim and invoices not covered by the approved Permit to Use Computerized Accounting System (PTUCAS).

Colombia enacted Legislative Decree 1474 on 29 December 2025, raising VAT on alcoholic beverages to 19% from 5%, imposing 19% VAT on online gambling, and reducing the VAT‑free threshold for low‑value imports from USD 200 to USD 50. The decree also allocates 5% of the alcoholic beverage VAT to departments. These measures aim to stabilise public finances after the 2026 budget rejection.

This commentary highlights five significant Canadian GST/HST court decisions from 2025, covering topics from tobacco sales to insurance, medical services, optional term extensions, and Airbnb-listed condo sales. The rulings clarify exemption status, input tax credit eligibility, and the treatment of new supplies, providing guidance for tax planning and compliance in 2026.

The OECD’s sixth VAT Forum highlighted the crypto economy and advances in artificial intelligence as emerging challenges for VAT administration. Participants discussed real‑time data collection and the SCAN‑VAT platform to strengthen compliance and combat fraud. The meeting, held from 26 to 29 January, underscored the need for coordinated international approaches.

The UK First‑Tier Tax Tribunal issued a judgment on Jan. 9 clarifying input VAT deduction and zero‑rating rules for second‑hand car transactions. The case involved a company that purchased high‑value used cars in Northern Ireland and sold them to customers in the Republic of Ireland. The Tribunal found that the taxpayer could not claim the input VAT deduction and zero‑rating as the Tax Agency had denied the claims.