Japan’s ruling coalition agreed in December 2025 to an outline of 2026 tax reform proposals covering corporate, international, consumption, and individual tax. The proposals include amendments to Pillar Two global minimum tax rules and new measures for consumption tax, R&D credits, and domestic production incentives. The outline is indicative and subject to legislative approval.

Peppol e-invoicing is a key pillar of European digital compliance, with the network based on EN 16931 and Peppol BIS enabling interoperability in Belgium, France, and Germany. New mandates in Belgium (2026) and France (Facture Electronique) will adopt Peppol, and Melasoft serves as a certified Peppol Access Point to automate compliance, integrating with SAP to ensure 100% legal compliance across 30+ countries.

KPMG’s latest e‑invoicing developments timeline highlights key implementations for 2026. Belgium will require all VAT payers to issue and receive electronic invoices for domestic B2B transactions from 1 January 2026, with a fallback rule for technical issues. Poland will implement the remaining four e‑invoicing acts in February 2026 after signing them on 9 December 2025.

Belgium will require VAT‑liable businesses to issue and receive structured electronic invoices (PEPPOL) from 1 January 2026. For the first three months of 2026, no sanctions will be imposed if companies can prove timely and reasonable preparations, but the tolerance is case‑by‑case and not a blanket postponement.

UK consumers buying from EU retailers may face extra customs duties, import VAT and courier handling fees on orders over £135, while orders £135 or less are exempt from additional charges. The new rules require EU sellers to register with HMRC and consumers can refuse extra fees but must pay to receive goods. Reclaiming overcharged duties and VAT is possible through specific customs forms, though courier fees are generally non‑reimbursable.

On 15 January 2026 France and Germany will roll out updated hybrid e‑invoicing standards—Factur‑X 1.0.8 in France and ZUGFeRD 2.4 in Germany—aligned with the EU EN 16931 framework and the French AFNOR XP Z12‑012 standard. The update adds support for complex invoice structures, a newer UN/CEFACT CII release, clearer rounding tolerance rules, and updated documentation. Businesses invoicing in either country should verify ERP compatibility and adjust tax logic to meet the new tolerances.

The EU has updated its eInvoicing standard EN 16931, adding B2B extensions, new technical specifications, and a semantic data model. The ViDA initiative now requires near real‑time VAT reporting for intra‑EU transactions, with a new Digital Reporting Requirements (DRR) message that is a VAT report, not an invoice. Businesses aligning early will avoid compliance issues and benefit from streamlined invoicing and reporting.

The Madras High Court has ruled that input tax credit (ITC) claimed by dealers is provisional until they provide proof of the underlying sale transaction. The court directed the dealer to submit the required documentation, emphasizing that ITC cannot be confirmed without supporting evidence. This decision underscores the importance of maintaining proper records for GST compliance.

Maastricht Centre for Taxation has released two free, open‑access books – "VAT in a Day" and "Customs in a Day" – that provide concise introductions to the EU VAT Directive and the Union Customs Code. The publications aim to equip readers with a solid grasp of EU indirect tax law within a single day and are supported by leading Dutch universities and tax firms.

From 1 January 2026, a wave of jurisdictions will tighten enforcement of VAT and GST on cross‑border digital services, expanding scope, tightening registration triggers and integrating data‑driven compliance. The changes focus on stronger enforcement, refined liability rules and closer integration of transaction and payment data, affecting non‑resident digital service providers worldwide.

The EU has granted importers of ammonia and urea a temporary exemption from import duties and CO2 tax, effective 1 January 2026, to keep fertilizers affordable for farmers amid the Mercosur trade negotiations.

Morrisons has lost a VAT court case, resulting in a £17 million tax bill. The ruling confirms the supermarket’s liability for unpaid VAT and underscores the importance of strict compliance for retailers. The decision may serve as a precedent for future VAT disputes in the UK.

Zimbabwe has increased the standard VAT rate on tourism services from 15% to 15.5% and re‑classified activities and transfers from zero‑rated to standard‑rated, effective 1 January 2026. The move puts pressure on operators with long‑lead bookings, prompting calls for a transitional period and raising compliance costs. The change is expected to reduce Zimbabwe’s competitiveness in the Southern African tourism market.

Argentina has mandated electronic invoicing for all VAT‑registered, simplified regime, and exempt taxpayers since April 1 2019. Invoices must be issued via AFIP’s CAE code, transmitted in XML, and retained for five years. Non‑compliance can lead to 2‑6 day closures, and Fonoa provides integration solutions to meet these requirements.

The blog outlines confirmed and proposed VAT rate adjustments across several countries effective in 2026, highlighting significant reductions and increases that will impact pricing, invoicing, and compliance for multinational businesses. Key changes include Finland’s 13.5% reduced rate, Germany’s 7% cut for hospitality, and Kazakhstan’s 16% standard rate hike. Businesses are urged to update ERP systems and review contracts to avoid penalties.

The Malaysian government has delayed the mandatory e‑invoicing rollout for businesses with annual sales between RM1 million and RM5 million to 1 January 2027, extending the penalty‑free transition period by 12 months. The exemption threshold was raised from RM500,000 to RM1 million in December 2025, and consolidated e‑invoicing will now cover retail and building materials sectors.

Dutch court rulings in September 2025 declared pension premiums taxable at 21% VAT, but the Minister of Finance has rejected adopting these rulings, maintaining the current VAT-exempt status until a Supreme Court decision. The rulings apply to mandatory sector pension schemes, while voluntary schemes remain unaffected. If the Supreme Court confirms the premiums are taxable, lawmakers may introduce corrective measures.

UK companies will be required to use e-invoicing for all VAT transactions from January 2029. Storecove is hosting a webinar on January 15, 2026 to preview the upcoming change and explain implementation steps. The session will cover the regulatory requirements, impact on businesses, and how an API can simplify compliance.

The UAE will shift VAT responsibility for scrap‑metal transactions from sellers to buyers on 14 January 2026. Under the new reverse‑charge mechanism, buyers must declare their purchase purpose and registration, while sellers must retain these declarations and note the reverse‑charge on invoices. The change aims to curb fraud and improve compliance in the scrap‑metal sector.

The article reviews EY Tax Alerts for 2025 covering U.S. human capital, workforce, individual tax, and indirect tax developments. It highlights key updates such as new travel restrictions, changes to state transit taxes, updated retirement plan limits, Social Security wage base adjustments, and new data collection requirements for ESTA travelers. It serves as a comprehensive resource for tax professionals to stay informed on regulatory changes.