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.

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.

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.

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.