Austria will permanently cut the VAT on basic food items from 10% to 5% effective mid‑2026, a 50% reduction that the Austrian National Bank estimates will lower inflation by 0.5 percentage points one‑off. The move, welcomed by the Austrian Retail Association, is intended to provide lasting relief to consumers and is expected to be passed on by retailers where possible.

From 1 January 2026, Mauritius will impose VAT on digital and electronic services supplied by non-resident providers. Foreign suppliers must register for VAT regardless of turnover, and those exceeding MUR 3 million must appoint a tax representative. The new rules also eliminate the reverse charge for VAT‑registered foreign suppliers, requiring them to charge VAT on supplies to Mauritian businesses.

The article explains the conditions under which a B2B intra‑community supply of goods can be zero‑rated in the EU. It outlines the required documentation, reporting obligations, and the consequences of non‑compliance.

On 16 January 2026, the Nigeria Revenue Service clarified that VAT on banking services has always applied to fees, commissions and service charges, not to the money transferred. The NRS confirmed that the Nigeria Tax Act does not impose new tax obligations on bank customers and urged stakeholders to rely on official channels for accurate information.

Portugal’s government has proposed a 6% VAT rate on construction and rehabilitation works for primary residences, targeting urban development projects initiated between September 2025 and December 2029. The measure applies to sales under €648,022 and rentals under €2,300/month, with specific timing and lease conditions, and includes amended reverse‑charge rules and potential VAT refunds for individuals.

BDO’s 2026 update lists a range of VAT and excise duty changes across 22 jurisdictions, including new GST regimes, rate adjustments, and registration threshold shifts. Key highlights include Bhutan’s 5% GST from 1 January 2026, Denmark’s 0% VAT on books, and Ghana’s VAT rate cut to 20% with a higher registration threshold. The article serves as a quick reference for tax professionals monitoring upcoming indirect tax reforms worldwide.

Austria will reduce the VAT on certain food items from 10% to 5% mid‑2026, a measure financed by a new tax on non‑recyclable plastics. The specific foodstuffs eligible for the discount are yet to be defined, and the competition authority will enforce the reduction and ensure retailers pass the benefit to consumers.

China’s new Value‑Added Tax Law and its Implementing Regulations entered force on 1 January 2026, bringing significant changes to taxable transaction definitions, VAT rates, and taxpayer status thresholds. The law retains the 13 %, 9 %, and 6 % rates, introduces a 3 % levying rate for the simplified tax method, and adjusts the real‑estate VAT rate for individuals to 3 %. Enterprises exceeding RMB 5 million in annual taxable sales must switch to the general taxation method, and the definition of taxable services and intangible assets now focuses on consumption within China or domestic sellers.

Complementary Law No. 227/2026, published on 13 January 2026, formally establishes the Management Committee of the Goods and Services Tax (CGIBS) and sets out governance, litigation, and revenue distribution rules for Brazil’s new IBS tax. The law does not impose immediate obligations on taxpayers but signals a shift to a centralized, standardized administration that will affect audits, enforcement, and data cross‑checking in the future.

Guernsey officials discuss that any future increase to the proposed 5% GST would require a two‑thirds super majority under the island’s Reform Law. The introductory rate would be 5% if retail food sales are included, or 6% otherwise, and a 6% rate would be needed to raise about £50 million net. The proposal aims to keep the tax broad and simple to limit future rate hikes.