Global VAT & Indirect Tax News

The UAE Federal Tax Authority announced key updates to VAT and excise tax regulations, including new service fee amendments effective 1 January 2026, a final filing deadline of 28 January 2026 for VAT returns, and clarified requirements for conformity certificates and a tiered volumetric model for sweetened drinks.

Colombia will impose a 10% VAT on gasoline and diesel from Jan 1 2026, alongside a 90‑peso per gallon gasoline and 99‑peso per gallon diesel price adjustment. The government also raised the minimum wage by 22.7% to 1.75 million pesos, while inflation is projected to stay above 4% by year‑end, prompting potential price‑control measures.

The UK’s new ‘taxi tax’ imposes a 20% VAT on minicab fares, but Uber has restructured driver contracts from January 2026 to act as an agent, shifting VAT responsibility to drivers. Most drivers earn below £90 k and therefore do not charge VAT, keeping fares outside London unchanged, while London fares remain subject to VAT.

Colombia’s government has shifted the 19% value‑added tax on online gambling from deposits to gross gaming revenue (GGR) for the 2026 fiscal year. The emergency decree, issued after the 2025 Financing Bill failed, re‑allocates the tax to GGR, reducing the effective burden on operators from up to 70% of real income to about 34% of gross revenue. The change is expected to fill a COP16.3 trillion budget gap for 2026 but may face legal challenges.

The webinar highlighted the impact of the One Big Beautiful Bill Act on state budgets, the ongoing Streamlined Sales and Use Tax Agreement, and specific sales‑tax challenges in California and Illinois. Key issues include federal conformity decisions, new California TTA rules, and Illinois’ remote‑seller amnesty and Chicago’s personal‑property lease tax adjustments.

KPMG US publication on indirect tax topics.

The article lists a series of VAT and GST rate changes set to take effect on 1 January 2026 across multiple jurisdictions, including the removal of reduced rates for accommodation in the Netherlands, new reduced rates in Finland and Lithuania, and standard rate increases in Zimbabwe and Malawi. It highlights the need for businesses to update pricing, invoicing, and compliance systems in anticipation of these changes.

From 1 January 2025, the UK's long-standing VAT exemption for private education was removed. Private schools must now charge 20% VAT on their fees, significantly impacting the independent education sector.

Belgium will require all invoices issued from 1 January 2026 to be structured for electronic invoicing. Businesses must migrate to Peppol or other compliant solutions as the Hermes platform is decommissioned.

India rolled out Next Generation GST Reform (GST 2.0) in September 2025, introducing a simplified two-slab structure of 5% and 18% to replace the previous four-slab system, easing compliance for MSMEs.

France confirmed its phased B2B e-invoicing rollout starting September 2026 for large enterprises, with full mandate for all businesses by September 2027. Factur-X is one of three mandatory formats.

Germany's mandatory e-invoicing regime for B2B transactions began on 1 January 2025. All businesses must now be capable of receiving EN 16931 compliant e-invoices, with full sending requirements phased in through 2028.

The Council of the European Union officially adopted the ViDA legislative package on 11 March 2025, removing legal barriers for member states to mandate e-invoicing and introducing harmonized rules for digital reporting across the EU.