South Africa’s 2026 Budget lifts the VAT registration threshold from R1 million to R2.3 million, easing compliance for small businesses. The announcement also notes a 21‑cent per litre increase in fuel levies, while the threshold had remained frozen for fifteen years. The move is seen as a relief for SMEs but is framed within broader fiscal and infrastructure challenges.

The Swedish Parliament approved a temporary cut of the food VAT rate from 12% to 6% effective 1 April 2026 until 31 December 2027. A food commission will monitor supermarket prices to ensure savings are passed on, and the measure is part of a broader economic package that includes increased housing allowances for low‑income families.

Croatia has extended its VAT reduction on heating and gas until 31 March 2027. The heating VAT remains at 5% (down from 25%) and gas VAT is temporarily cut to 5% before returning to 13%. The cuts cost about €289 million.

Mexico amended its Federal Revenue Law on 7 November 2025, removing the ability to recover 16% VAT on goods and services used in major medical insurance claims. The change is retroactive from 1 January 2025 and is expected to raise major medical costs by 10‑12%, potentially increasing loss ratios by 8‑12% and overall captive costs by over 20%. WTW recommends early engagement and scenario analysis to manage the impact.

Finance Minister Bezalel Smotrich sought to double the VAT exemption for personal online imports to $150, but lawmakers rejected the proposal. He subsequently signed an order raising the exemption to $130, a move that has been appealed to Israel's top court. The change affects the VAT treatment of online purchases by Israeli consumers.

The Supreme Court of India ruled that Rooh Afza is a fruit drink under the Uttar Pradesh Value Added Tax Act, removing it from the residual category that had subjected it to a 12.5% VAT rate. The decision places the product under Entry 103 of Schedule II Part A, which historically attracted a 4% VAT rate for the assessment period 2008‑2012. The ruling emphasizes that tax classification must be based on statutory language, not food safety definitions.

Mexico amended its Federal Revenue Law on 7 November 2025, removing insurers’ ability to recover 16% VAT on goods and services used in covered major medical treatments. The change is retroactive from 1 January 2025 and is expected to raise major medical costs by 10‑12%, potentially increasing loss ratios by 8‑12% and overall captive costs by over 20%.

British Columbia will broaden its Provincial Sales Tax (PST) to include a range of professional services from 1 October 2026, maintaining a 7% rate that, combined with the federal 5% GST, brings the total tax on most supplies to 12%. For architectural, engineering and geoscience services, PST will apply to only 30% of the purchase price. Service providers in the new scope must register for PST and prepare to charge, collect and remit the tax, with further administrative guidance to follow.

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.