The EU has proposed a law allowing governments to temporarily reduce VAT rates to counteract price rises, particularly in fuel, and protect citizens’ standard of living. The proposal is aimed at mitigating inflationary pressures in Montenegro and has broad political support. It follows examples such as Spain’s reduction of fuel VAT from 21% to 10%.

Russia is proposing to exempt crypto exchanges and custodial services from VAT, with the bill expected to be adopted by July 1 2026. The exemption covers digital rights confirming exclusively monetary claims but does not apply to profits, which will still be taxed under standard rules. Ordinary users will face a purchase limit of $3,700 per year and can only buy the largest coins listed by the Central Bank.

Russia will exempt cryptocurrency exchange and custody services from value‑added tax, covering ancillary services related to issuance and trading of digital currencies. The bill, expected to be adopted by July 1 2026, also sets corporate tax rules for platform profits and allows traders to offset acquisition costs against income, though losses cannot be carried forward.

Slovakia is drafting legislation to extend its domestic reverse charge regime to high‑risk B2B services such as IT, advertising and consultancy. The new rules would shift VAT liability to the customer and would only take effect once Slovakia secures a derogation from Article 193 of the EU VAT Directive. Businesses should prepare for customer‑side VAT accounting, stricter VAT ID checks and ERP updates.

Sri Lanka has postponed the introduction of VAT on non‑resident digital services to 1 July 2026, from the originally planned 1 April. The amendment imposes an 18 % VAT on B2C digital and electronic services, aligning the country with over 120 other jurisdictions. Guidance on registration and compliance will be released in 2027, while local providers already pay 18 % VAT and B2B services are expected to be zero‑rated.

Spain has approved a draft bill that will extend mandatory e‑invoicing from the B2G sector to B2B transactions. The new law requires companies to use certified invoicing software from 1 January 2024 and sets a phased implementation schedule based on turnover thresholds. Non‑compliance can lead to fines up to €10,000.

Poland’s National e‑Invoicing System (KSeF) entered its second phase on April 1 2026, expanding the mandatory e‑invoicing requirement to almost all VAT‑registered businesses. The Ministry of Finance confirmed no sanctions for 2026 errors and reported over 87 million invoices processed in the first two months. The platform operates on Polish servers with proprietary encryption and a 24:1 capacity ratio.

The Philippine government has issued a VAT regulation exempting indigenous natural gas and related power generation activities. The exemption applies to indigenous natural gas, aggregated gas attributable to it, electricity generated from it, and ancillary services, subject to endorsement from the Department of Energy and certification of usage. The measure takes effect 15 days after publication, with specific limitations and permit requirements.

Zambia has introduced a temporary 0% VAT rate on petrol and diesel imports to curb rising fuel costs and stabilize inflation. The zero‑rating will apply from April to June 2026, allowing suppliers to recover input VAT while reducing end‑user prices. The measure is set to be reviewed after the three‑month period.

Spain's Tax Agency has enacted Royal Decree 238/2026, mandating electronic invoicing for businesses and professionals. The decree takes effect 20 April 2026, with high‑volume firms (VAT turnover > €8 million) required to comply 12 months after the ministerial order, and others 24 months later. A free application will be provided, and the public e‑invoicing platform must be available at least two months before the first effective application.

Ukraine’s Cabinet approved a package of tax bills that introduce a 5% personal income tax for digital‑platform users, VAT on international shipments over €150, and extend the military tax for three years after martial law ends. The measures also implement DAC7 information exchange and aim to align Ukrainian law with EU and OECD norms.

Vietnam has temporarily set VAT on gasoline, diesel and aviation fuel to 0% from 26 March to 15 April 2026, exempting businesses from VAT declaration and payment while allowing input VAT recovery. The measure also waives environmental protection tax and zeroes special consumption tax on gasoline, expected to cut state revenue by about 7.2 trillion VND per month.

Ukraine’s Cabinet of Ministers will submit three separate tax bills to the Verkhovna Rada in early April 2026, including a new tax on the OLX platform, a 5% increase in the military levy, and the abolition of parcel benefits. No bill to introduce VAT for individual entrepreneurs will be presented, as the government seeks to have the IMF remove that requirement. The parliament previously failed to adopt the OLX tax on 10 March 2026.

From 1 July 2026 Hungary will tighten its M-sheet VAT reporting, requiring detailed breakdowns of VAT charged and deducted by rate, and mandating new data fields. The ÁNYK filing system will be phased out by 31 December 2026, with taxpayers moving to the eVAT platform, and M-sheets will be abolished entirely from 2027. These changes stem from the 2025 Autumn Tax Package and represent a shift toward real‑time, deduction‑based reporting.

Portugal has introduced a 6% VAT rate for the construction of homes intended for sale or rent at moderate prices, but the measure is restricted by EU regulations to owner‑occupied homes up to €684,000 and rentals up to €2,300 per month. The new law, published on 6 March 2026, gives the government 180 days to approve the relief, and accompanying decrees also lower income tax for rentals, exempt capital gains on reinvested profits, and impose a 7.5% transfer tax on non‑resident buyers.

Cyprus has reduced the VAT on domestic electricity to 5% from 1 May 2026 to 31 March 2027 and zero‑rated meat, poultry and fish from 1 April to 30 September 2026. Motor fuel excise duty will fall by 8.33 cents per litre between April and June 2026, and the planned Green Tax has been cancelled. The measures are part of a €200 m support package that also includes subsidies for hotels, airlines and farmers.

Argentina has reduced the VAT on electricity used in agro‑industrial irrigation systems to 10.5% effective 1 April 2026, cutting the standard 21% rate in half. The measure, part of the Labour Modernisation Law, targets energy consumption linked to irrigation to lower input costs for farmers and support export competitiveness.

From 20 March 2026, Cambodia will reduce the VAT rate on gasoline and diesel from 10% to 4%, with the government absorbing the remaining 6% to subsidise fuel consumption. The temporary measure applies to both B2B and B2C sales and requires updates to invoicing and e‑filing systems. The change is part of a broader effort to manage energy‑driven inflation without altering the overall VAT framework.

Spain's Council of Ministers approved a Royal Decree mandating B2B e‑invoicing for all businesses and professionals. The phased rollout begins with the Treasury ministerial order, expected before 1 July 2026, with compliance deadlines of 12 months for firms over €8 million and 24 months for others. Structured electronic invoices in FacturaE, UBL or CII formats must be used, and non‑compliance can trigger fines up to €10 000 per infraction.

The Philippine Bureau of Internal Revenue (BIR) has announced that transactions involving indigenous natural gas are exempt from value-added tax (VAT). This decision applies to all such transactions and is intended to support indigenous communities.