Global VAT & Indirect Tax News

Effective 1 January 2026, Romania expands the RO e‑Factura reporting scope to include supplies to non‑resident VAT‑registered customers, shifts the invoice transmission deadline from five calendar days to five working days, and removes several compliance notification requirements. Suppliers using a personal numeric code (CNP) that started before 15 January 2026 must register in the mandatory RO e‑Factura Register, while VAT‑on‑receipt scheme businesses remain exempt from notification obligations until 30 September 2026.

The Brazilian Federal Government will reduce tax incentives for several federal taxes starting in 2026. Corporate Income Tax and Import Tax incentives will be cut from 1 January 2026, while other taxes such as PIS/Pasep, Cofins, CSLL, IPI, and employer social security contributions will see reductions from 1 April 2026. The changes affect a broad range of tax regimes and are subject to complementary legislation.

This guide explains Australia's e-invoicing landscape, including the Peppol network, current compliance requirements, and projected market growth. It highlights that while private businesses are not yet mandated to use e-invoicing, government entities must, with deadlines set for 2026, and outlines funding and efficiency gains. The article also details the standard format and benefits such as faster payments and reduced errors.

The UK Supreme Court is hearing a case on whether Hotel La Tour Ltd can recover the VAT paid on professional fees incurred to facilitate the sale of shares in its subsidiary. The dispute centers on the link between the input VAT and the company’s taxable activities. The judgment, issued 17 December 2025, will clarify the recoverability of such VAT in similar share‑sale contexts.

The First‑tier Tribunal (Tax Chamber) upheld HMRC’s VAT liability ruling that Story Terrace Limited’s supplies are standard‑rated ghost‑writing services, not zero‑rated books. The decision, issued on 11 December 2025, confirms the classification under the Value Added Tax Act 1994.

This IRAS guidance outlines the steps for GST registration in Singapore, including e‑learning requirements, GIRO processing, effective dates, and special provisions for overseas entities. It details processing timelines, backdating rules for compulsory registration, and agent appointment obligations for foreign suppliers.

This IRAS guidance explains the steps and requirements for completing Singapore’s GST F1 registration form, including eligibility checks, mandatory e-learning, and technical prerequisites such as InvoiceNow readiness. It also outlines the 14‑day draft retention period and the prohibition on collecting GST before approval.

The Bahamas Prime Minister announced that VAT on unprepared food will be removed, effective 1 April 2026, bringing the rate to 0%. The announcement also includes a reduction of the overall VAT rate from 12% to 10%, aiming to ease the cost of living for Bahamian households.

A Dutch court ruled that hospice services are not exempt from VAT and are subject to the normal 21% rate. The foundation providing the services is entitled to deduct input VAT and received refunds for 2019 and 2020. The decision clarifies that the combined service is one indivisible performance and does not qualify for short‑stay or exemption.

The European Parliament’s ViDA package introduces mandatory e‑invoicing and near real‑time digital reporting for cross‑border EU transactions from 1 July 2030, requiring the EU electronic invoicing format. Businesses must report transaction data within 10 days of the taxable event, and member states may extend domestic e‑invoicing to before, on, or after that date with transitional periods up to 2035. The initiative aims to harmonise VAT rules, reduce fraud, and lower compliance costs across the EU.

Slovakia’s Financial Administration has released accreditation requirements for digital postmen and announced a mandatory e‑invoicing mandate for domestic taxpayers from 1 January 2027, expanding to cross‑border transactions on 1 July 2030. The draft law requires e‑invoices in the EN16931 format and allows voluntary testing with certified providers starting spring 2026.

New Zealand GST invoices must be issued within 27 days of the supply and retained for at least seven years. They must contain specific details such as supplier and customer information, invoice date, description, taxable amount, GST, and gross amount. Invoices below NZD 1,000 may omit customer details and detailed GST calculations, and no tax invoice is required for supplies of NZD 50 or less.

New Zealand’s Inland Revenue explains how e‑invoicing works, the benefits, and the changes to GST record‑keeping that took effect on 1 April 2023. The guidance notes that e‑invoices are exchanged via the Peppol network and that suppliers are encouraged to send them instead of PDFs.

Egypt's tax authority announced a new facilitation package that reduces the VAT rate on medical devices to 5%, fully exempts inputs for kidney dialysis equipment, extends VAT payment suspension up to four years for industrial machinery, and exempts transit services under customs supervision. It also standardizes the 14% VAT rate on soap and industrial detergents for household use, allowing input deductions. These measures aim to support healthcare, manufacturing, and transit trade.

Washington State Department of Revenue has issued updated guidance for businesses seeking a direct pay permit for sales and use tax. The guidance outlines eligibility thresholds ($240,000 cumulative liability or $10M taxable purchases), application process, reporting obligations, and limitations on permit use and transfer. Businesses must comply with these rules to claim a five‑year deduction on retail sales tax.

Missouri's Department of Revenue clarified that contractors who purchase materials for real property improvements are considered the final user, making those sales taxable. Contractors cannot charge sales tax on the lump sum contract price but may pass the cost of sales tax for materials to the homeowner. The ruling, Letter Ruling No. LR 8374, was issued on November 24, 2025.

Austria is modernising its fiscal cash register regime from 2026, raising the small‑seller exemption threshold to €45,000, making the 15‑product‑group recording rule permanent, and allowing optional digital receipts from 1 October 2026. Paper receipts remain available on request, while core security features such as secure recording, digital signatures and QR‑coded receipts stay unchanged.

The Court of Arnhem-Leeuwarden ruled that X BV, G BV and M BV do not form a VAT fiscal unity because there is no financial interconnection – no shareholder holds a majority in X BV and the parties did not act as a single group. The decision cites the 1979 HR precedent on financial control and confirms that VAT adjustments imposed on X BV for services to M BV are valid.

Finland’s Parliament approved a bill on 28 November 2025 that introduces a 13.5% VAT rate on specified services, goods, and imports of collectibles and antiques. The new rate and related provisions take effect on 20 December 2025, covering all tax obligations from that date, including intra‑community acquisitions. The legislation will enter into force on the same day.