Global VAT & Indirect Tax News

Azerbaijan’s Parliament has approved a new VAT regime for non‑resident digital service providers, requiring local registration, charging, collecting and remitting VAT from 1 January 2026. The change replaces the previous withholding‑tax or optional‑registration system, introduces a USD 10 000 annual sales threshold and ends the B2B reverse charge that had been in place since 2023. The current VAT rate on digital services remains 18%.

Sweden is preparing to overhaul its One‑Stop Shop (OSS) and e‑commerce VAT rules effective 1 January 2027. The changes clarify deemed‑supplier status for platforms, tighten distance‑sales threshold conditions, redefine the interaction with the domestic threshold, expand the third‑country OSS regime, and refine input‑VAT deduction and refund regimes.