Cyprus has extended the zero percent VAT rate on a range of essential items until 31 December 2026. The extension, announced by the Cyprus Tax Department on 15 January 2026, covers baby milk, diapers, feminine hygiene products, and certain fresh fruits and vegetables.

Brazil’s 2026‑2032 VAT reform introduces a targeted “Cashback” mechanism that refunds part of the new CBS and IBS taxes to low‑income families. The scheme will reimburse 100% of CBS and 20% of IBS on essential utilities (draft figures) and is expected to start in 2027 with a phased rollout. Refunds will be transferred electronically to families’ bank accounts linked to their CPF.

The UK government will introduce a new electric vehicle excise duty (eVED) from April 2028, charging 3p per mile for electric cars and 1.5p per mile for plug‑in hybrids. The levy will be administered by the DVLA and integrated into the existing VED system, with a consultation deadline of 18 March 2026.

China’s State Taxation Administration announced new mandatory VAT registration rules effective 1 January 2026, requiring businesses with annual taxable sales above RMB 5 million to register as general VAT taxpayers. The announcement introduces retroactive compliance, mandatory registration for specific sectors, and automatic reclassification for late registrants, increasing compliance risk for businesses near the threshold.

The Bahamas Prime Minister announced that unprepared food will be zero-rated for VAT effective 1 April 2026. The change applies to all unprepared food items sold within the country.

The EU is proposing two new customs charges for small‑value imported parcels: a €2 handling fee effective November 2026 and a flat €3 duty on goods below €150 effective July 2026. These charges would be paid via the IOSS monthly return and could undermine the scheme by increasing costs and operational complexity. The measures are temporary, pending 2028 customs reforms, and will be reviewed every three months.

China’s Ministry of Finance announced the cancellation of VAT export rebates for photovoltaic glass products effective 1 April 2026, which is expected to give a short‑term boost to soda ash prices. Battery product rebates will be phased out during 2026 and fully eliminated by 2027. The policy, declared on 9 January 2026, is part of a broader effort to curb excess inventory in the soda ash market.

Hungary has raised its Intrastat reporting thresholds for EU intra‑community dispatches and arrivals effective 1 January 2026. The arrivals threshold rises to HUF 500 million and the dispatches threshold to HUF 200 million, while the statistical reporting thresholds remain unchanged. The electronic Intrastat form now requires detailed data such as goods description, commodity code, delivery terms, transport mode, destination and origin countries, weight or quantity, and invoice value, and since January 2022 also the country of origin for dispatches and the VAT ID of the recipient.

The Bahamas will apply a 0% VAT rate to unprepared essential food items from 1 April 2026, replacing the 5% reduced rate introduced in 2025. This follows a broader VAT reform that lowered the standard rate from 12% to 10% in 2024, aiming to ease cost‑of‑living pressures for consumers.

The article explains that the GST Council’s exemption of individual health and term insurance policies effective 22 September 2025 did not lower premiums because insurers lost the ability to claim input tax credit on operating expenses, making the exemption cost‑neutral. It outlines insurers’ options—absorbing costs, raising premiums, or recalibrating commissions—and calls for structural fixes such as partial ITC restoration and concessional GST rates.

Cyprus has extended a zero VAT rate on essential fresh produce until the end of 2026. The measure, announced by the Tax Department following a decree dated 21 November 2025, applies from 1 January to 31 December 2026 and covers a specific list of vegetables and fruits. Businesses must comply with the decree’s provisions to qualify for the zero rate.

Côte d’Ivoire has introduced a 9% value‑added tax on animal feed, production inputs and related packaging, effective 17 January 2026. The measure replaces a previous exemption that applied until the end of 2025 and is part of the 2026 Finance Law tax reform. The reduced rate, chosen over the standard 18%, aims to limit the impact on the livestock sector while still bringing these goods into the VAT framework.

Belgium will implement a new VAT rate structure from 1 March 2026, shifting take‑away meals and many leisure services to a 12% rate while raising the rate for furnished accommodation to 12% and moving plant protection products to the standard 21% rate. The changes also refine drink taxation in restaurants and preserve 6% rates for specific cultural performances.

South Korea’s National Tax Service has introduced a new filing requirement for VAT‑exempt business owners, including YouTubers, drivers, and delivery riders. All such owners must submit an annual business operation status report by February 10, 2025, and will receive mobile notifications starting on the 21st of the reporting month. The rule expands guidance to one‑person media creators and sets a 24 million won income threshold for certain personal service providers.

Turkey’s TBMM Plan and Budget Commission has extended the VAT‑free period for inward processing regime (IPR) purchases from 31 December 2025 to 31 December 2030. The change aims to prevent exporters and manufacturer‑exporters from having to pay VAT upfront on domestic raw materials, semi‑finished and auxiliary goods. The regulation will enter into force after its publication in the Official newspaper.

Turkey’s Parliament extended the VAT‑free period for inward processing regime (IPR) purchases from 31 December 2025 to 31 December 2030. The change aims to prevent exporters and manufacturer‑exporters from having to pay VAT upfront on domestic raw materials, thereby protecting cash flow and competitiveness.

Denmark has increased its Intrastat Dispatches threshold to DKK 11.8 million effective 1 January 2026, while the Arrivals threshold remains unchanged at DKK 42 million. The change requires businesses to report additional data in the electronic Intrastat form, including goods description, commodity code, delivery terms, transport mode, destination and origin countries, weight/quantity, and invoice value. Since January 2022, Intrastat also mandates the country of origin for dispatches and the VAT ID of the recipient.

The Polish Ministry of Finance confirms that the mandatory KSeF e‑invoicing system will start as scheduled, with no delays. The system will be operational from 1 Feb 2026 for high‑turnover advertisers, from 1 Apr 2026 for other taxpayers (excluding those with monthly sales ≤10 000 PLN), and from 1 Jan 2027 for those with lower sales. No penalties will apply until 1 Jan 2027, after which non‑compliance will be penalised.

Tunisia will require all service sector companies to submit electronic invoices via the El Fatoora platform from 1 January 2026, under Article 53 of the 2026 Finance Law. The mandate mandates TEIF XML format, qualified electronic signatures, and imposes penalties for non‑compliance. Service providers must act immediately to meet technical, procedural, and financial obligations.

Sri Lanka has launched a national electronic invoicing framework to modernize its tax administration and curb tax evasion. The system, integrated with the existing Revenue Administration Management Information System (RAMIS) via a secure Web API, will roll out in stages, starting with a pilot phase expected to be fully deployed by the end of 2025 and eventually becoming mandatory for all VAT‑registered businesses and B2C POS transactions.