Bloomberg Tax argues that digital services taxes (DSTs) are ineffective and distort the digital economy, citing low revenue and compliance burdens. The article highlights that several countries—including Canada, India, Malaysia, and France—have moved away from DSTs or are considering alternatives, and it advocates shifting to a VAT framework for digital services.

Japan’s ruling coalition agreed in December 2025 to an outline of 2026 tax reform proposals covering corporate, international, consumption, and individual tax. The proposals include amendments to Pillar Two global minimum tax rules and new measures for consumption tax, R&D credits, and domestic production incentives. The outline is indicative and subject to legislative approval.

Peppol e-invoicing is a key pillar of European digital compliance, with the network based on EN 16931 and Peppol BIS enabling interoperability in Belgium, France, and Germany. New mandates in Belgium (2026) and France (Facture Electronique) will adopt Peppol, and Melasoft serves as a certified Peppol Access Point to automate compliance, integrating with SAP to ensure 100% legal compliance across 30+ countries.

The EU will abolish the EUR 150 customs duty exemption for small parcels from 1 July 2026, replacing it with a fixed EUR 3 duty per item if VAT is paid via IOSS. A Union‑wide customs handling fee will start in November 2026, while several Member States have already introduced national fees from 1 January 2026. Additionally, the EU will incentivise the IOSS mechanism for B2C distance sales from 1 July 2028 and is working to remove the EUR 150 threshold for IOSS.

This manual provides HMRC staff with guidance on cross‑border exchange of information under UK international exchange agreements. It covers core principles, legal framework, specific forms of exchange, country‑by‑country reporting, automatic exchange of financial accounts, guidance on tax rulings, disclosable arrangements, mandatory disclosure rules, crypto‑asset reporting framework, and reporting rules for digital platforms.

The European Data Protection Supervisor has warned that the European Commission’s proposal to grant the European Public Prosecutor’s Office and OLAF direct access to VAT information at EU level needs clearer safeguards to prevent blurring administrative and criminal boundaries. The proposal, aimed at tackling VAT fraud costing the EU €12.5‑32.8 bn annually, would amend an EU regulation to centralise access to VAT data for law‑enforcement purposes.

Spain’s December 2025 draft law transposes the first wave of the EU ViDA directive, tightening OSS rules, clarifying the €10,000 distance‑sales threshold, and expanding non‑Union OSS scope. It also introduces a representative requirement for non‑EU businesses seeking VAT refunds and sets transitional measures for call‑off stock and energy supplies. The draft signals that the most significant e‑invoicing and digital‑reporting mandates will arrive in 2030 and 2035.

UK consumers buying from EU retailers may face extra customs duties, import VAT and courier handling fees on orders over £135, while orders £135 or less are exempt from additional charges. The new rules require EU sellers to register with HMRC and consumers can refuse extra fees but must pay to receive goods. Reclaiming overcharged duties and VAT is possible through specific customs forms, though courier fees are generally non‑reimbursable.

Fabian Barth examines how HMRC’s positions on input tax deduction have varied across cases, citing Royal Opera House, Hotel La Tour, and Littlewoods. He highlights contradictory stances on LVCR trade in the Channel Islands, underscoring the complexity of VAT compliance. The post emphasizes that court rulings and precedent shape the practical application of VAT rules.

On 15 January 2026 France and Germany will roll out updated hybrid e‑invoicing standards—Factur‑X 1.0.8 in France and ZUGFeRD 2.4 in Germany—aligned with the EU EN 16931 framework and the French AFNOR XP Z12‑012 standard. The update adds support for complex invoice structures, a newer UN/CEFACT CII release, clearer rounding tolerance rules, and updated documentation. Businesses invoicing in either country should verify ERP compatibility and adjust tax logic to meet the new tolerances.