VAT & Indirect Tax Intelligence
VAT news digest
Curated from global sources. Twice-weekly digest, free.
EU: The European Commission has amended the Union Customs Code Implementing Act to allow electronic certificates of origin in ELAN, effective 1 July 2026. The changes also introduce Article 59a for goods from the United States, requiring proof of direct transport or non-alteration.
Today's VAT news highlights key developments affecting businesses globally, including the implications of marketplace facilitator laws for online sellers in the Americas and updates on GST treatment for advance payments in the APAC region. Meanwhile, European businesses are preparing for significant changes to customs rules and VAT registration. These updates, along with guides to state-specific sales tax and upcoming EU VAT reforms, underscore the need for businesses to stay informed about evolving tax regulations.
Today's VAT news highlights significant developments in e-invoicing regulations across the globe, with Spain and the United Kingdom making strides in implementing mandatory e-invoicing systems. Meanwhile, in other regions, the UAE is pushing forward with its e-invoice plans, while the government in a key APAC nation has withdrawn a proposed VAT package for small businesses. These updates underscore the evolving landscape of tax compliance and digital invoicing requirements for businesses worldwide.
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EU has introduced a EUR 3 customs flat charge for low-value B2C consignments from third countries, effective 1 July 2026. The measure replaces the former EUR 150 de-minimis exemption and applies to parcels valued up to EUR 150, including shipments from the United Kingdom.
The UAE Ministry of Finance has launched a Peppol-based e-invoicing test, with a phased mandate starting in 2027. The rollout includes mandatory ASP appointments for large taxpayers from October 2026, with subsequent waves for smaller businesses and B2G compliance by October 2027. Intra-group e-invoicing will become mandatory in January 2029.
The EU's ViDA package introduces a comprehensive overhaul of the VAT framework, affecting UK exporters trading with EU customers. Key milestones include mandatory e-invoicing from 14 April 2025, OSS clarifications on 1 January 2027, and real-time reporting from 1 July 2030.
OECD proposes amendments to its Model Reporting Rules for digital platforms, aiming to reduce administrative burden for gig economy and e-commerce sellers. The changes include raising the reporting threshold to EUR 3000 and removing the 30-transaction limit, with a public consultation running until 14 August 2026.
The European Commission has launched a public consultation on new implementing rules for the Carbon Border Adjustment Mechanism (CBAM), effective from 1 January 2026. The draft regulation provides guidance on claiming deductions for carbon prices paid outside the EU, establishes common methodologies, documentation, verification procedures, and evidence requirements, and requires importers to be Authorized CBAM Declarants with annual reporting and certificate surrender obligations. Importers of covered goods such as steel, aluminium, cement, fertilisers and hydrogen should monitor the outcome as it will affect compliance and financial obligations.
HMRC’s Notice 700 has been updated to clarify VAT treatment of mobile phone contracts and packages. The key change is that no input tax can be recovered when an employee holds a contract in their own name. The guidance also confirms recoverability rules for business‑only mobile and broadband services, and outlines apportionment requirements for private use.
The article explains that while GST was designed to eliminate cascading tax and enable seamless input tax credit (ITC), the reality has become a compliance-driven process. ITC eligibility now hinges on invoice matching, GSTR‑2B reconciliation, Rule 36(4), Section 16(2)(aa) restrictions, and the Invoice Management System (IMS), making credit availability conditional on supplier filings and compliance data. Businesses face working‑capital pressure and litigation due to delayed or denied ITC.
Botswana has introduced new VAT rules for non‑resident digital service providers, requiring registration from 1 June 2026 if supplies exceed BWP 500,000, charging 14 % VAT on B2C services from 1 October 2026, and applying a reverse‑charge regime for B2B services from 1 August 2026. The Value Added Tax (Amendment) Act, 2025, and accompanying regulations provide a simplified reporting framework for these providers.
Mississippi imposes a 7% statewide sales tax on tangible goods and certain services, with an economic nexus threshold of $250,000 for remote sellers. The state requires registration via the Department of Revenue’s Taxpayer Access Point, imposes a 3.5% contractor’s tax on large construction contracts, and levies penalties for late filing.
The Serbian customs authorities will launch NCTS 6 on 28 May 2026 at 21:00, with the system unavailable for 5–6 hours. Activation of Phase 6 occurs on 29 May 2026 during the morning. TransitNet will enable a “Wait” scenario that allows transit declarations to be submitted with security codes 0 or 2, and will automatically attach the IC2 MRN when the IC2 service is selected. Clients are advised to include the IC2 MRN in transit declarations for shipments routed through Croatia or Bulgaria.
Ireland will introduce a 9% reduced VAT rate for restaurant, catering and hairdresser services from 1 July 2026, replacing the previous 13.5% rate. The change requires businesses to correctly allocate mixed supplies to the appropriate rates—accommodation remains at 13.5% and alcoholic drinks at 23%—to avoid penalties.
This guide explains the UK VAT invoice requirements for 2026, detailing the 14 mandatory fields for full invoices, the simplified format for supplies up to £250, and the 30‑day issuance deadline. It also covers retention rules, the £250 threshold, and how invoice rules change for cross‑border sales to the EU, UAE, and Saudi Arabia.
This guide explains how marketplace facilitator laws in the US, UK, and EU affect sellers on Amazon, Etsy, and eBay. It details the thresholds and dates for state‑level facilitator duties, the role of platforms in collecting and remitting sales tax, and the need for sellers to maintain separate permits for other sales channels. Key dates include Utah's July 1, 2025 change, Illinois' January 1, 2026 shift, and Alaska's January 1, 2025 simplification.
