Global VAT & Indirect Tax News

Bosnia and Herzegovina MPs have tabled a proposal to abolish the gambling sector's VAT exemption, aiming to bring the activity under standard VAT rules. The amendment would raise Federation revenue to at least KM 150 million annually, with an extra KM 50 million for local communities, and redirect funds to healthcare and social initiatives. The move follows a 2025 proposal that allocated 60% of gambling tax to the treasury, 20% to social initiatives, and 20% to specialised healthcare.

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.