Global VAT & Indirect Tax News

Liberia will replace its existing 12% Goods and Services Tax (GST) with an 18% Value Added Tax (VAT) regime effective 1 January 2027. The GST will be increased to 13% from 1 January 2026, and businesses can begin VAT registration from 1 July 2026. The new VAT will allow input tax deductions, eliminating the cascading effect of the current GST.

Ghana's recent VAT reforms aim to correct structural weaknesses rather than provide immediate price cuts. Key changes include abolishing the COVID‑19 Health Recovery Levy, allowing NHIL and GETFund levies to be credited as input VAT, raising the goods‑based registration threshold, and phasing out flat‑rate schemes. The reforms also emphasize electronic invoicing to improve compliance and revenue collection.

HMRC has introduced a new requirement for UK VAT registration, effective 19 January 2026, that businesses must provide the unique VAT registration application reference number before adding VAT to a Business Tax Account. This step aims to close a fraud window where criminals linked VAT numbers to Government Gateway accounts before the legitimate owner could log in. Businesses should safeguard the reference number and act swiftly after registration to mitigate fraud risks.

Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has issued amendments to the VAT Implementing Regulations that clarify the responsibilities of electronic marketplaces and e-commerce platforms. The changes define when a marketplace is deemed to facilitate a supply and therefore liable for VAT, and introduce phased effective dates for compliance. Businesses operating in the Kingdom should review their operating models and contractual arrangements to ensure alignment with the updated framework.

Canada has increased the maximum GST credit from $700 to $900 to help low‑income families cope with high food inflation. A family of four could receive up to $1,890 this year and about $1,400 annually for the next four years. Eligibility is based on filing a tax return, and the change comes amid a 6.2% food inflation rate in December 2025.