Global VAT & Indirect Tax News

South Africa’s tax authority, SARS, has confirmed a multi‑year plan to roll out mandatory e‑invoicing and real‑time VAT digital reporting. The phased approach will begin with system design and pilot engagement through 2026, followed by onboarding of large VAT taxpayers and priority sectors between 2026 and 2029. The reform aims to transform VAT administration into a seamless, data‑driven process where compliance is automated and risk is detected at the point of transaction.

Canada Revenue Agency has confirmed that independent financial advisors will now need to collect and remit GST/HST on trailing commissions from mutual fund dealers, effective July 1, 2026. The rule applies to advisors whose taxable revenue from trailing commissions exceeds $30,000, while dealer employees remain exempt. The CRA’s notice clarifies that trailing commissions are no longer considered financial services for GST purposes.

Russia’s Ministry of Industry and Trade has proposed a flat 22% VAT on all foreign goods, including purchases via online marketplaces, effective 1 January 2027. The proposal contrasts with a Ministry of Finance draft that would raise the rate gradually from 5% in 2027 to 20% in 2030. The announcement was made by Minister Anton Alikhanov at the Duma Committee on Industrial Policy on 11 February 2026.

China’s new VAT Law effective 1 Jan 2026 introduces updated thresholds for small‑scale taxpayers. Monthly and quarterly thresholds remain at RMB 100,000 and RMB 300,000, while the per‑transaction threshold is doubled to RMB 1,000. Natural persons in six specific activities must aggregate sales monthly, affecting foreign‑invested enterprises’ supplier and invoicing practices.

The Norwegian Tax Administration’s Tax Appeals Board issued Decision No. SKNS1-2025-65 on Feb. 5, 2025, ruling that transferring mature energy‑related development projects to separate project companies (SPVs) via asset sales or demergers does not qualify for a VAT exemption because the projects are not standalone, ongoing economic units. The decision confirms the Tax Office’s view and clarifies the VAT treatment for such transfers.

The Belarusian Ministry of Taxes and Duties clarified on 6 February 2026 that fixed assets used by crypto-asset operators are treated as goods for VAT purposes, and that VAT paid on their importation cannot be deducted. The guidance also specifies that fixed assets directly used in token-related activities are subject to non-deductible VAT. This clarification applies to all crypto-asset operators operating within Belarus.

France has introduced a temporary €2 small parcel tax on low‑value imports effective March 1 2026. The tax applies to parcels below €150, is levied per item at the time of import, and will remain in force until the EU‑wide parcel tax takes effect in November 2026, but no later than December 31 2026. The liable party is the person responsible for import VAT on the H7 declaration, covering IOSS users, French VAT registrants, and others.

The Swedish Tax Court issued Advance Notice No. 54‑25/I on 17 Dec 2025, clarifying that the input VAT deduction limitation for permanent residences does not extend to parking garages that are clearly separated from the residence. In the case, a taxpayer owning a residential building, a commercial building and a parking garage sought guidance, and the court ruled that the garage’s design and use meant it was not part of a permanent residence, so its costs are not subject to the limitation.

The European Court of Justice issued a preliminary ruling on Feb. 9, 2026, concerning Bulgarian VAT liability for third parties. In Case C‑121/24, a road‑transport company was assessed for unpaid VAT after the supplier was removed from the commercial register. The ruling clarifies that the taxpayer can be liable for the supplier’s unpaid VAT when the supplier fails to pay the chargeable VAT.

The European Parliament’s ECON committee has released a draft report urging the removal of the long‑standing VAT exemption for financial and insurance services under Directive 2006/112/EC. The report highlights the distortions caused by the exemption, the proliferation of over 90 sector‑specific taxes across the EU, and calls for a coordinated framework that taxes identifiable fees, clarifies emerging services, and harmonises cost‑sharing mechanisms.

The Mongolian Government has submitted a comprehensive VAT reform package to Parliament, introducing major changes such as full deductibility of reverse‑charged VAT on foreign services, immediate deduction of capital expenditure VAT, a simplified regime for businesses below MNT 400 million, and a one‑to‑two‑month deferral of monthly VAT payments. The standard VAT rate remains 10%.

The Danish Business Authority has unveiled SAF‑T 2.0, a new standard for exchanging accounting data at the transaction level. From 1 January 2027 all registered digital accounting system providers must support SAF‑T 2.0, while companies using non‑registered systems must continue to generate SAF‑T 1.0 files and comply with the Bookkeeping Act. The update enhances data sharing with partners and authorities such as the Danish Tax Agency and supports future automation in reporting to public sector bodies.

The Finance (No. 2) Bill 2024‑26 has been amended in Committee and will return to the House of Commons for further stages. Scotland will introduce a new Air Departure Tax on 1 April 2027, replacing APD, with a consultation closing 26 March 2026. Deloitte’s Advance Tax Certainty service will become operational from July 2026, while the OECD Global Forum on VAT met in January 2026 to discuss digital economy and near real‑time data collection.

A draft European Parliament report dated Feb. 4 calls for changes to the VAT exemption for the EU’s financial sector, arguing it is misaligned with today’s economic and technological realities. The report proposes coordinated EU‑wide taxation where feasible and minimum standards for temporary windfall taxation to align exceptional profits with long‑term public investment priorities. It was authored by German MEP Matthias Ecke.

The French Administrative Court of Appeal of Paris issued Decision No. 25PA00785 on Feb. 4, 2026, clarifying that the ordinary law procedure for VAT refunds for taxable persons outside the EU does not apply when the taxpayer did not carry out transactions during the period. The UK company’s claim for an import VAT credit was partially denied by the Court of Montreuil and upheld by the Court of Appeal.

Belgium’s federal parliament has approved a broad VAT reform bill (No. 56/1205) that introduces significant changes to invoicing, deduction adjustments, refund procedures and compliance enforcement. Key measures include extended VAT adjustment periods, a substitute return mechanism for late filings, clarified VAT ID reporting for non‑Belgian customers, mandatory e‑invoicing for government contracts and a three‑month rule for VAT refunds.

Ireland’s Revenue has confirmed a phased launch of mandatory B2B e‑invoicing and e‑reporting, starting with large corporations in November 2028 and expanding to all taxpayers by November 2029. The EU‑wide ViDA e‑invoicing system for intra‑community transactions will come into force in July 2030. The initiative follows a public consultation that ran from 13 October 2023 to 31 January 2024.

The Czech Customs Administration clarified on Feb. 6 that individuals from non‑EU countries can claim VAT refunds on goods purchased in the Czech Republic if they prove residence abroad and are not conducting business locally. Refunds are excluded for tobacco, alcohol, food, fuel and other specified goods, and sellers must provide two copies of the sales document with required notations.

On 27 January 2026 the Swedish Tax Court issued Advance Notice No. 62‑25/I, clarifying the VAT treatment of mobile housing modules leased to municipalities and private owners for student housing and nursing homes. The court held that leasing these modules does not constitute leasing real estate for VAT purposes, affecting input‑VAT deduction rights. The modules are assembled on site, mounted on foundations, equipped with utility ducts, and subject to time‑limited building permits.