Global VAT & Indirect Tax News

Nigeria has extended its e‑invoicing and Electronic Fiscal System (EFS) to medium‑sized and emerging taxpayers. Medium‑size businesses (₦1B–₦5B revenue) must go live on 1 July 2026, while emerging taxpayers (under ₦1B) must go live on 1 July 2027, with enforcement starting 1 January 2027 and 1 January 2028 respectively. The mandate applies to all VAT‑registered businesses issuing invoices for taxable transactions in Nigeria and requires real‑time invoice generation, validation and transmission through the government platform.

The Dutch Ministry of Finance is moving forward with a domestic B2B e-invoicing mandate set to take effect in January 2030, alongside EU-wide ViDA requirements for intra‑community transactions from July 2030. The mandate design was presented to Parliament on 10 March 2026, with legislation expected by mid‑2028 and a two‑year implementation window. Optional domestic e‑reporting may follow in January 2032.

The article explains how usage‑based billing models in AI and SaaS create VAT compliance challenges, including timing of tax points, prepaid credits, hybrid pricing, tiered pricing, and the need for visibility into billing systems. It stresses that tax teams must engage early with product, billing, and finance to manage risk.

The Philippines will require structured e‑invoicing for large taxpayers and e‑commerce businesses from 1 January 2027, with the first phase of the mandate taking effect on 31 December 2026. The requirement is based on the TRAIN Law and BIR Revenue Regulation 011‑2025, but specific structured formats have yet to be defined. A second phase is expected later in 2027 to extend the mandate to all businesses and mandate transmission via a central platform.

Denmark has cancelled the planned OIOUBL 3.0 rollout and announced a new Nemhandel BIS 4 e‑invoicing standard based on EN 16931 and Peppol BIS 4.0. The transition will occur in phases from 2026 to 2030, including a shift to an opt‑out registration model and the final phase of the Digital Bookkeeping Act in 2026.

On 9 March 2026 the First‑Tier Tribunal ruled that the reduced 5% VAT rate on electricity applies to public EV charging points, extending the domestic rate to these supplies. The decision is based on the 1,000 kWh per customer per month threshold and could allow charging providers to claim refunds for up to four years. The ruling is not yet legally binding until HMRC accepts it or the case is finalized.

Italy is reviewing the activation of its "mobile excise" mechanism to offset the VAT windfall caused by rising fuel prices, after oil prices surged above $100 per barrel on 9 March 2026. The government is considering cutting fixed excise duties to balance the increased VAT receipts generated by higher pump prices.

The article explains how the VAT classification of a travel business as an agent or principal determines whether VAT is charged on the full travel supply or only on the intermediary commission. It outlines the key contractual and commercial factors that influence this classification and highlights the financial implications for finance teams, including VAT accounting, input VAT recovery, and the applicability of the Tour Operators Margin Scheme (TOMS).

The article explains how usage‑based billing models—common in AI and SaaS—create complex VAT timing issues. It outlines when VAT is due for prepaid credits, hybrid pricing, tiered discounts, and the risks of delayed data processing. Tax teams are urged to embed VAT rules into billing workflows early to avoid compliance gaps.

Denmark’s parliament is considering Bill L125, which would abolish the coffee and chocolate consumption taxes from 1 July 2026 and introduce a 0 % VAT rate on books, e‑books and audiobooks. The bill also provides a refund mechanism for businesses to reclaim tax paid on stock held at the transition date, while earlier this year Denmark extended 25 % VAT to commercial leisure services.

The EU Court of Justice clarified that loyalty points in the Lyko case are discounts, not vouchers, because they cannot be redeemed independently of a purchase. This means VAT is charged on the full price of the initial purchase, and redemption of points reduces the VAT base of the subsequent purchase, while unused points require no VAT adjustment. The ruling also indicates that loyalty schemes that allow independent payment are treated as vouchers, triggering VAT at redemption.

Austria has increased its Intrastat reporting thresholds for 2026. From 1 January 2026, the arrivals threshold rises to €5 million per annum and the dispatch threshold to €1.2 million per annum. Statistical thresholds remain at €12 million for both arrivals and dispatches.

The Swiss federal government plans to increase VAT by 0.8 percentage points over a decade (2028‑2038) to raise CHF 31 bn for defence. The proposal requires a constitutional amendment, a new armaments fund law, and a national referendum in summer 2027. Consultation ends in May, with only the Centre party supporting the measure.

Sweden’s Riksdag approved a temporary reduction of the VAT rate on food from 12% to 6% effective 1 April 2026, lasting until 31 December 2027. The change aims to support household finances during the period.

France will enforce a comprehensive e‑invoicing and e‑reporting regime from 1 September 2026. Large and mid‑size enterprises must issue and receive electronic invoices immediately, while SMEs and micro‑enterprises will join the rollout in 2027. The reform covers domestic B2B, B2C, and cross‑border transactions, with special rules for overseas territories.

Spanish business and professional associations have called for fiscal deductions to help companies and self-employed professionals implement the new electronic invoicing and Verifactu systems, which are set to become mandatory on 1 January 2027. They argue that without such incentives, 3.3 million SMEs and 3.4 million self-employed could face a collapse in the rollout. The request is an amendment to the Royal Decree Law that maintains the 2027 deadline while seeking tax relief.

EY discusses the e-invoicing requirements for South Africa, outlining what CFOs and COOs should consider to comply with the new digital invoicing rules.

Belgium’s VAT chain reform introduces a new VAT provision account effective 1 May 2026, replacing the current account and changing account numbers. The summer regime for late filing will be abolished, and taxpayers can request historic VAT credits via MyMinfin. Key dates are 30 April 2026 for return submission and 1 May 2026 for the new account and credit transfer.

Mexico’s e‑invoicing regime, governed by the CFDI XML format (Anexo 20, version 4.0), applies universally to all taxpayers and covers B2B, B2C, and B2G transactions with no turnover threshold. The 2026 tax reform tightens authenticity checks, expands SAT enforcement powers, and imposes fines of 5–10 % of invoice value for non‑compliance.

The Western Cape High Court declared Section 7 of South Africa's VAT Act unconstitutional, ruling that the Minister of Finance cannot unilaterally raise the VAT rate. The court imposed a 12‑month period before Parliament can confirm or reject any VAT rate adjustments, and the proposed 1% increase announced in the 2025 Budget Speech was withdrawn.