Global VAT & Indirect Tax News

Brazil is launching a seven‑year transition to a dual VAT system, replacing PIS, Cofins, ICMS and ISS with federal CBS and state IBS. The pilot starts in 2026 with minimal rates and e‑invoicing waivers, while full implementation is slated for 2033 with a consolidated rate of roughly 28%. The reform includes compensation funds for states and a shift to a destination‑based regime.

The article explains that from July 2028 the EU’s ViDA Single VAT Registration will eliminate the call‑off stock simplification, making cross‑border inventory movements taxable and digitally reportable immediately. It outlines the need for businesses to use OSS or local VAT registrations, highlights the risk of legacy systems, and promotes modern single‑engine platforms such as VATCalc to meet the new compliance requirements.

Bloomberg Tax’s analysis outlines how the EU’s ViDA reform and global digital reporting mandates will reshape VAT compliance in 2026, with several EU member states implementing e‑invoicing and real‑time data transmission ahead of the 2030 deadline. The article highlights the growing role of AI in detecting non‑compliance and the implications of the 2025 CJEU Arcomet ruling on transfer‑pricing adjustments. Businesses are urged to modernize invoicing, automate data flows, and align internal processes to meet the new digital and AI‑driven compliance requirements.

Mozambique’s Decree 52/2025 amends the VAT Refund Regulation, tightening documentation requirements and introducing new procedures for suspension notifications and special regimes for mining and oil sectors. The changes take effect on 29 January 2026 and include reduced refund periods for diplomatic missions and new security deposit obligations.

The year 2026 marks a shift in how low‑value goods entering the EU are taxed, with the EU introducing a flat €3 customs duty and a planned €2 handling fee, while several member states enact national measures. These changes aim to streamline customs processing and increase revenue from low‑value e‑commerce parcels.

A Dutch court decision confirms that the reduced VAT rate for aids does not apply to stairlifts. The reduced rate is limited to wheelchairs, crutches, standing chairs and high‑bed mattresses, while stairlifts are subject to the standard VAT rate. The ruling clarifies the interpretation of the table post and has immediate compliance implications for suppliers.

Deloitte China outlines the impact of its new VAT law effective 1 Jan 2026, highlighting key changes such as cross‑border supply rules, deemed sales, mixed sales, input‑VAT recovery rights, and mandatory e‑invoicing. The firm advises businesses to evaluate compliance and strategic implications, while noting forthcoming preferential policies and potential registration options for foreign entities.

Deloitte’s partner Adham Hafoudh discusses the rapid rollout of e‑invoicing and e‑reporting mandates across Europe, the data consolidation challenges they pose, and the expected expansion of these obligations up to 2030. He highlights Deloitte’s integrated advisory and technology solutions to help firms adapt, and notes the potential role of AI in further automating tax processes while stressing the need for precision and data security.

Malaysia has postponed the 4th wave of mandatory B2B e‑invoicing for firms with RM1m‑RM5m turnover to January 2027, and raised the minimum sales threshold for e‑invoicing from RM500k to RM1m, cancelling the 5th wave. The MyInvois portal will roll out in phases from August 2024, with new guidance (MyInvois 2.1) issued in April 2025 and a 6‑month soft‑landing period for the first wave. The Continuous Transaction Control model now requires pre‑verification of XML invoices via LHDN’s portal/API, issuance of a digital certification serial number, and inclusion of a QR code on all invoices.

Azerbaijan has announced a mandatory VAT regime for digital services supplied by non‑resident providers, requiring them to register, charge VAT and file returns. The scope covers software, SaaS, cloud, streaming, digital content, online advertising, digital marketing, platform access and other automated services. Detailed thresholds, filing frequency and administrative requirements are still pending clarification.

Turkey’s Revenue Administration proposes a phased reduction of the Digital Services Tax (DST) from 7.5% to 5% in January 2026 and further to 2.5% in January 2027. The DST applies to digital service providers exceeding a global revenue threshold of EUR 750 million or local revenue of TRY 20 million, with strict monthly reporting and no deductions allowed. Exemptions require an independent auditor report and are subject to strict thresholds.

China’s State Administration of Taxation has rolled out a mandatory marketplace reporting regime that requires digital platforms to submit structured merchant-level data to tax authorities. The new rules, effective from October 2025, have already increased tax visibility and collections by 13% from online sellers and are expected to tighten compliance for e‑commerce operators. The regime aligns China with global standards such as DAC7 and imposes penalties of up to RMB 500,000 for non‑compliance.

VATCalc explains how the EU’s 2028 Customs Reform will eliminate the €150 low‑value threshold, expand platform liability, and require real‑time, transaction‑level VAT determination and reporting. The article argues that legacy VAT systems are ill‑suited and that a single, legislative‑coded engine is essential to meet the new harmonised import VAT model across all 27 Member States. It highlights the need for rapid, integrated compliance to avoid penalties and operational risk.

France has proposed raising its VAT registration thresholds for goods, services, legal services, and non‑profit organisations, but the changes are currently on hold pending budget approval. The new thresholds would be €93,500 for goods and accommodation services, €41,250 for services, €55,000 for legal services, and €80,011 for non‑profit organisations, with an EU‑wide scheme offering a €100,000 pan‑Europe threshold for small businesses.

The EU’s VAT in the Digital Age (ViDA) reforms are accelerating the shift toward transaction‑level digital reporting, mandatory e‑invoicing, and real‑time compliance. Legacy ERP tax engines struggle to adapt to the fragmented, rapidly evolving national implementations, while VATCalc’s legislatively‑coded, serverless architecture offers a scalable, integrated solution. Businesses must evaluate whether their tax engine can pivot quickly without repeated reinvestment to meet ViDA’s requirements.

Bulgaria will adopt the euro on 1 January 2026, triggering new VAT thresholds expressed in euros. The National Revenue Agency will enforce price monitoring and dual‑pricing rules to prevent profiteering during the currency transition.

This guide outlines France’s VAT framework, including standard and reduced rates, registration thresholds, and upcoming e‑invoicing requirements. It also details compliance obligations for non‑resident businesses, digital services, and import VAT deferment schemes.

Miami County, Ohio, is proposing a 0.5% sales tax increase to fund a new maximum‑security jail, with the measure slated for the May 2026 ballot. Commissioners are holding public tours of the aging facility from January to April 2026 to build support for the tax and highlight the need for modern infrastructure.