Global VAT & Indirect Tax News

The U.S. Supreme Court invalidated tariffs imposed under the International Emergency Economic Powers Act, ruling that the President lacked authority to impose 25% tariffs on Mexico and Canada and 10% tariffs on China and other partners. The decision remanded the case and left importers without a remedy, prompting the administration to announce a new worldwide tariff under the Trade Act of 1974. Importers must seek refunds through Customs and the U.S. Court of International Trade.

The article discusses how AI is transforming tax compliance, moving from insight to execution in regulated workflows. It highlights the scale of U.S. sales and use tax obligations across 19,000 jurisdictions and the potential for AI to cut routine reporting work by up to 65%. The piece emphasizes that tax professionals will retain final accountability while focusing on advisory roles.

This Thomson Reuters blog outlines the growing complexities of indirect tax compliance, from global VAT and GST rules to real‑time reporting demands, and explains how AI, cloud platforms and integrated solutions can automate filings, improve accuracy and reduce audit risk.

The article outlines how AI and advanced analytics are sharpening audit precision, highlights intensified transfer pricing scrutiny, and stresses the need for businesses to prepare for Pillar Two global minimum tax rules. It emphasizes pre‑audit readiness, real‑time data integrity, and cross‑functional alignment to mitigate risk in a rapidly evolving regulatory landscape.

Avalara’s blog outlines the 2026 sales tax holiday schedule across the United States, detailing dates, exempt product categories, and state‑specific rules. The post highlights key holidays in Alabama, Arkansas, Connecticut, Florida, and other states, noting price caps, local tax considerations, and the need for retailers to update POS systems.

Washington State Department of Revenue has issued updated guidance for businesses seeking a direct pay permit for sales and use tax. The guidance outlines eligibility thresholds ($240,000 cumulative liability or $10M taxable purchases), application process, reporting obligations, and limitations on permit use and transfer. Businesses must comply with these rules to claim a five‑year deduction on retail sales tax.

Missouri's Department of Revenue clarified that contractors who purchase materials for real property improvements are considered the final user, making those sales taxable. Contractors cannot charge sales tax on the lump sum contract price but may pass the cost of sales tax for materials to the homeowner. The ruling, Letter Ruling No. LR 8374, was issued on November 24, 2025.

The EY Sales and Use Tax Quarterly Update provides a summary of the major legislative, administrative and judicial sales and use tax developments for the first quarter of 2026. It highlights recent changes involving nexus, tax base and exemptions, technology, and compliance and controversy.

This guide outlines Arkansas’s statewide sales and use tax rate of 6.5%, economic nexus thresholds, prepayment obligations for high‑volume sellers, and the state’s participation in the Streamlined Sales Tax initiative. It also covers exemption certificates, filing methods, and the destination‑based sourcing rule.

Kentucky Rep. Beverly Chester-Burton has filed House Bill 175 to establish a yearly sales tax holiday for school‑related purchases. The holiday would run from 12:01 a.m. on the first Friday of August until midnight Sunday, exempting most clothing items up to $200 and other specific items under $3,000. If enacted, the state sales tax would be eliminated on those items during the holiday period.

Effective January 1 2026, unincorporated Boulder County will see a new minimum wage of $16.82 per hour for nontipped workers and $13.80 for tipped workers, while the county’s sales tax rises by 0.15 % to 1.335 %, bringing the combined rate to 6.335 %. The change, approved in a November 2025 election, funds mental‑health services for three years and could lead Niwot to adopt a 2.5 % sales tax if it incorporates.

Arkansas has introduced a Farmers Sales Tax Exemption Card under Act 621 of 2025, allowing farmers to claim sales tax exemptions at the point of sale for items such as animals, chemicals, feed, machinery, and seed. The card costs $20 for issuance, $10 for renewal, and remains valid for eight years.

The article reviews EY Tax Alerts for 2025 covering U.S. human capital, workforce, individual tax, and indirect tax developments. It highlights key updates such as new travel restrictions, changes to state transit taxes, updated retirement plan limits, Social Security wage base adjustments, and new data collection requirements for ESTA travelers. It serves as a comprehensive resource for tax professionals to stay informed on regulatory changes.

The article reports that Pima County voters will decide on March 10, 2026 whether to extend a half‑cent transportation sales tax (Propositions 418 and 419) to fund a $2.67 billion, 20‑year transportation plan. Public meetings and Q&A sessions are scheduled in January and February to explain the plan’s allocations for road expansion, pavement rehabilitation and transit.

Miami County, Ohio, is proposing a 0.5% sales tax increase to fund a new maximum‑security jail, with the measure slated for the May 2026 ballot. Commissioners are holding public tours of the aging facility from January to April 2026 to build support for the tax and highlight the need for modern infrastructure.

The webinar highlighted the impact of the One Big Beautiful Bill Act on state budgets, the ongoing Streamlined Sales and Use Tax Agreement, and specific sales‑tax challenges in California and Illinois. Key issues include federal conformity decisions, new California TTA rules, and Illinois’ remote‑seller amnesty and Chicago’s personal‑property lease tax adjustments.

KPMG US publication on indirect tax topics.