South Africa’s Finance Minister announced that the VAT registration threshold will rise from R1 million to R2.3 million, and the turnover‑tax limit for very small businesses will also be lifted to R2.3 million. The change, first made in 2009, also removes the restriction on tax year‑end dates, easing compliance burdens for small firms. The adjustment aligns with inflation expectations and aims to encourage entrepreneurship.

Switzerland is considering a 0.8 percentage‑point increase in its standard VAT rate from 8.1% to 8.9% to raise about CHF 31 billion for defence spending over ten years. The proposal, announced by the Federal Council in January 2026, would need parliamentary approval and a 2027 referendum. A separate 0.7 percentage‑point VAT rise to 8.8% for pension reforms was approved in April 2024 and is expected to take effect on 1 January 2028, pending a 2027 referendum.

Portugal’s Parliament has approved a 6% VAT rate on new residential housing construction for primary permanent residences, effective 1 January 2026. The measure applies to projects with procedural initiatives between 25 September 2025 and 31 December 2029, and includes conditions on residence duration and penalties for non‑compliance. Self‑build projects and investment contracts for lease also benefit from partial VAT refunds.

The Knesset rejected Finance Minister Bezalel Smotrich’s order to double the VAT exemption ceiling on personal imports to $150, voting 59 against and 25 in favor. The order was intended to lower the cost of living and reduce online purchase prices, but critics warned it would harm local businesses.

The Israeli Knesset voted on 24 February 2026 to revoke a ministerial order that would have raised the VAT exemption threshold for online purchases from $75 to $150. The order, which had been in effect since December 24, was defeated 25–59 after Prime Minister Netanyahu allowed a free vote for coalition lawmakers. The revocation removes the exemption for imported packages valued up to $150, restoring the previous $75 threshold.

Croatia has announced it will extend the reduced 5% VAT rate on certain energy products until March 31, 2027, to help curb inflation. The measure covers natural gas, district heating, and various wood fuels, and the extension is expected to forgo about €47 million in revenue. Without the extension, the rate would revert to 13% at the end of March 2026.

Austria will exempt menstrual hygiene products and certain contraceptives from VAT from 1 January 2026, replacing a 10 % reduced rate. The Austrian Federal Competition Authority (BWB) is empowered to ensure the tax savings are passed on to consumers and can launch sector investigations if prices do not reflect the relief. This marks a novel use of competition law to safeguard the effectiveness of a gender‑focused social policy.

The European Parliament’s Committee on Economic and Monetary Affairs released a draft report on 4 February 2026 urging the European Commission to overhaul the outdated 1977 VAT exemption for financial services. The report proposes taxing identifiable charges such as fees and commissions, introduces coordinated temporary windfall taxes on exceptional bank profits, and calls for an alternative to the withdrawn EU-wide Financial Transaction Tax.