Global VAT & Indirect Tax News

EU Council has approved a temporary flat €3 customs duty per item for low‑value e‑commerce imports (≤€150) from third countries, effective 1 July 2026 until July 2028. The levy targets non‑EU sellers registered under the Import One‑Stop Shop, covering about 93 % of parcels, and is separate from VAT. It will be replaced by the EU Customs Data Hub in 2028, after which standard customs tariffs will apply.

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.

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 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 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.