Global VAT & Indirect Tax News

France has rolled out a comprehensive e‑invoicing and e‑reporting regime that applies to all VAT‑registered businesses. Large and intermediate enterprises must send and receive structured e‑invoices from September 2026, with the sending obligation extended to all businesses by September 2027. The system requires real‑time reporting via Approved Platforms and imposes penalties of up to €15,000 per year for non‑compliance.

In December 2025 the Court of Appeal in ’s‑Hertogenbosch ruled that VAT can be deducted on construction costs of a workroom and garage rented to a company, provided the rental is a taxable economic activity. The ruling allows deduction only for the portion attributable to the taxable rental, even if the garage has limited private use. The decision is not final, as a cassation appeal has been filed with the Supreme Court, so businesses should seek VAT advice to ensure compliance.

The Danish Customs and Tax Administration issued a Tax Council Binding Answer (No. SKM2026.87.SR) on Feb. 17, 2026, clarifying the VAT treatment of insurance activities and business transfers for Danish branches of nonresident insurance groups. The answer addresses joint VAT registration conditions, agency agreements between branches, and employee transfer VAT implications, providing much-needed guidance for taxpayers in Denmark’s insurance sector.

Belgium’s cabinet approved a draft royal decree on 14 February 2026 that raises VAT rates on certain goods and services. The decree increases the rate for pesticide and plant protection product deliveries from 12% to 21% and for furnished accommodation and camping pitch services from 6% to 12%.

Argentina’s tax authority ARCA has introduced General Resolution 5824/26, expanding mandatory e‑invoicing to new sectors and launching a monthly electronic settlement system effective 1 July 2026. The resolution also provides pre‑filled VAT returns for Simplified Tax Regime taxpayers, with invoicing data automatically populating annual returns. Electronic invoices will be available via ARCA’s “My Receipts” portal and integrated into the Digital VAT Ledger.

The article reports that SAP’s newly approved Platform Agreed (PA) meets French e‑invoicing requirements, but users remain concerned about integration and fixed deadlines. It notes that the reform is already in place in Italy and Mexico and will be extended across the EU in the coming years, with full implementation in France scheduled for 2026.

Italian tax authority clarifies that heirs of a deceased professional must issue VAT invoices on behalf of the deceased and, if the VAT number has ceased, must request its reactivation to pay tax on compensation received after death.

Moldovan Parliament has raised the VAT registration threshold from 1.2 million lei to 1.7 million lei, effective 1 March 2026. The change reduces the number of companies required to register for VAT and aims to ease administrative burdens for microenterprises.

HMRC’s guidance explains that intermediaries can register for the Import One‑Stop Shop (IOSS) scheme from 1 April 2026 and must submit a monthly IOSS VAT return on behalf of each client. The return must capture VAT on low‑value imports to EU and Northern Ireland consumers, use ECB exchange rates, and requires nil returns if no sales occur. Intermediaries must also keep 10‑year records and can correct returns within three years.

Belgium will require all VAT‑registered businesses to exchange B2B invoices electronically via the Peppol network using the BIS Billing 3.0 standard from 1 January 2026. A Q1 2026 grace period allows technical setup without penalties, while non‑resident firms and B2C transactions are exempt. Penalties for non‑compliance start at €1,500 and increase to €5,000 for subsequent offences.

German economists warn that a shift from the current 19% VAT to 21% is possible amid weak growth and tight budgets. A 21% rate would raise gross prices of VAT‑able goods by about 1.68% and create a short‑term inflation bump, especially impacting discretionary sectors such as retail, e‑commerce, and hospitality.

On 1 January 2026, Dutch law introduces a five‑year revision regime for investment services on real estate. The regime applies to services costing €30,000 or more (excluding VAT) and requires annual testing of 20% of deducted VAT against actual use. It also mandates repayment or additional deduction when the property's use changes between taxable and exempt.

The European Court of Justice issued a preliminary ruling (Case C-475/24) on 16 February 2026, addressing the admissibility of criminal evidence in disputes over Romanian input VAT deductions linked to inactive or unregistered suppliers. The decision interprets EU Directive 2006/112/EC on the common system of VAT in conjunction with the EU Charter of Fundamental Rights.

Greek tax authority AADE has postponed the mandatory B2B e‑invoicing launch to 2 March 2026, with a two‑month soft launch ending 2 May 2026 for large resident businesses. All other resident taxpayers must adopt the system from 1 October 2026, and a new penalty regime and early‑adopter incentives have been announced.

Sweden has introduced a new bill to strengthen anti‑VAT fraud enforcement, effective 1 July 2026. The legislation expands the Swedish Tax Agency’s powers, including enhanced scrutiny at registration, refusal or deregistration of VAT registrations, invalidation of Swedish VAT numbers in the EU VIES system, and blocking excess input VAT repayments. These measures aim to disrupt missing‑trader, carousel, and repayment fraud across the EU.

Germany’s national e‑invoicing mandate requires all businesses to receive structured invoices from January 2025 and to transmit them by revenue thresholds, with full coverage by January 2028. The system accepts XRechnung, ZUGFeRD and Peppol BIS formats, all EN 16931 compliant, and mandates 8‑year electronic archiving under GoBD. Non‑compliance can trigger VAT deduction denial, GoBD violations and administrative fines.

Brazil’s new Technical Notes mandate that invoices and payments be linked under the split payment framework, requiring integration between electronic tax documents (DF‑e) and payment data. The system will be tested from 6 April 2026 and go live on 4 May 2026, with XML and invoicing processes needing updates to include transaction data for automatic withholding of IBS and CBS.

A London appeals court dismissed a UK telecommunications provider’s bid to recover £51.1 million in VAT payments, agreeing with a lower court that the VAT is owed when the provider supplied services. The decision confirms the provider cannot recover the VAT paid on its telecom services.

The article argues that compliance with country mandates should be seen as a baseline, not the ultimate goal. It emphasizes that true invoicing success lies in data governance and ensuring invoices are accurate, fraud‑free, and defensible in accounting, rather than merely passing XML validation. The author highlights mandates in Poland, France, Belgium, Germany, and Saudi Arabia, and calls for a holistic approach to tax determination and data integrity.

The UAE has introduced a comprehensive e‑invoicing mandate under Cabinet Decision No. 100/2025, requiring all VAT‑registered businesses to issue structured electronic invoices in the PINT AE format via a 5‑corner DCTCE model. The phased rollout begins with a pilot in July 2026 for large enterprises, with subsequent deadlines for large taxpayers, SMEs, and government entities through 2027. Penalties range from AED 5,000 per month for non‑implementation to AED 100 per invoice, up to AED 5,000 per month.