BDO Indirect Tax News

• Angola: The Ministry of Finance published a notice on 8 December 2025 confirming that the new e-invoicing requirements are mandatory for large companies starting on 1 January 2026 following a short transitional period (for prior coverage, see the item in the October 2025 issue of Indirect Tax News). E-invoicing will be extended to all companies in 2027.
• Belgium: The tax authorities announced on 2 December 2025 that penalties will not be imposed for the first three months of 2026 where taxpayers are not in compliance with the e-invoicing rules that apply effective 1 January 2026. To benefit from the waiver, the taxpayer must take reasonable and timely steps towards compliance. The waiver applies where taxpayers do not yet have the technical means to send or receive structured e-invoices or where their own or a third party’s system do not yet support the issuance of structured e-invoices.
• Bhutan: The Goods and Services Tax (Amendment) of Bhutan Act 2025, which became effective on 1 January 2026, introduces a 5% GST rate to replace the 7% sales tax, revises the list of GST-exempt transactions and reduces penalties for noncompliance. 
• Botswana: The Value Added Tax (Amendment) Bill, No. 22 of 2025, published on 31 October 2025, introduces VAT on remote services supplied by nonresidents to residents of Botswana via electronic networks. “Remote services" are services supplied without a necessary connection between the physical location of the supplier and the recipient. The Minister of Finance will release an order specifying the effective date of the new rules.
• Burkina Faso: An e-invoicing system implemented on 6 January 2026 will become mandatory for all taxpayers starting 1 July 2026. E-invoicing will replace the country’s paper-based system and require real-time transmission of invoicing data to the tax authorities.
• Chile: A resolution published on 7 January 2026 introduces a centralised digital signature system for taxpayers that issue e-invoices. The system will be used to authenticate documents and eliminate the need for individual digital certificates.
• China: As from 1 April 2026, VAT refunds on 249 exported products will be eliminated and VAT refunds for exports of 22 types of battery products will be reduced from that date through 31 December 2026, with full elimination in 2027.

A State Council decree published on 30 December 2025 and effective 1 January 2026 contains regulations for the operation of the new VAT law.

• European Union: The European Commission announced on 12 December 2025 that a temporary fixed EUR 3 customs duty per item on e-commerce parcels valued below EUR 150 will apply as from 1 July 2026 to protect the competitiveness of EU businesses by levelling the playing field between e-commerce and traditional retail. The duty will apply to parcels sent directly to consumers from countries outside the EU, which are currently duty-free.
• Ireland: A document published on 8 October 2025, "VAT Modernisation: Implementation of e-invoicing in Ireland” outlines the tax authorities’ work to prepare for the implementation of the EU’s VAT in the Digital Age (ViDA). The publication provides a three-phase roadmap for domestic e-invoicing and real-time reporting ahead of the 1 July 2030 ViDA mandate:
  • Phase 1 (November 2028): VAT-registered large corporates must implement e-invoicing and real-time reporting for domestic B2B transactions.
  • Phase 2 (November 2029): Domestic B2B e-invoicing and real time reporting extend to all VAT-registered businesses engaged in intra-EU B2B trade.
  • Phase 3 (July 2030): Full ViDA implementation for all cross-border EU B2B transactions across all 27 EU member states. Irish VAT-registered businesses already operating under the domestic system will transition to meet these EU obligations.
• Kazakhstan: As from 1 January 2026, foreign companies supplying goods or services in Kazakhstan through internet platforms must conditionally register for VAT. A specific procedure is adopted for this purpose.
• Liberia: A VAT regime will replace the current GST regime on 1 January 2027, with registration opening in July 2026. The standard VAT rate will be 18% (compared to 10% under the GST regime).
• Liechtenstein: The interest rate on late payments of VAT and refunds decreased from 4.5% to 4% on 1 January 2026.
• Malaysia: Updated guidance released on 7 December 2025 increases the annual turnover threshold for e-invoicing. Taxpayers with annual turnover below MYR 1 million are now exempt (previously MYR 500,000). Under the updated e-Invoice Guideline Version 4.6, the implementation date is 1 July 2026 for new businesses established between  2023 and 2025 with turnover of at least MYR 1 million. For businesses established in 2026 or later, the implementation date is 1 July 2026 or the commencement date of operations. If first year turnover is less than MYR 1 million, the implementation date becomes 1 January of the second year following the year in which the threshold is reached.
• Mexico: A resolution applicable for calendar year 2026 requires resident and nonresident digital service providers (the latter without a permanent establishment in Mexico) to submit detailed transactional information through the authorities’ online platform. Data must be available to the tax authorities the day after the day after each transaction and remain accessible for five years.
• Moldova: The VAT registration threshold increased from MDL 1.2 million to MDL 1.5 million on 1 January 2026.
• North Macedonia: Recent VAT changes will subject low-value parcels ordered online from abroad with a value of up to EUR 22 to VAT, except in limited cases. Additionally, on 5 January, the Minister of Finance and the Director of the Public Revenue Office (PRO) announced the launch of pilot testing for the new e-invoice system (e-Faktura), focusing on the Application Programming Interface between businesses’ invoicing software systems and the e-Faktura platform.
• OECD: The OECD released a report on 10 January 2026 examining the design and operation of digital continuous transactional reporting regimes (DCTR) for VAT that have expanded rapidly in recent years. DCTR involves the (near) real-time reporting of invoices or transactional data to the tax authorities but has been adopted in piecemeal fashion. The OECD report offers guidance for jurisdictions considering DCTR implementation, covering strategic approaches, digital invoicing foundations, compliance support, interoperability and long-term sustainability.
• Philippines: Revenue Memorandum Circular (RMC) No. 107-2025 published on 24 November 2025 indefinitely suspends most field audits and related operations. The suspension—which applies to all Bureau of Inland Revenue offices involved in audit and field operations—will remain in effect until lifted by the BIR Commissioner. The government will review existing policies and procedures to address systemic issues, protect taxpayer rights and develop a transparent, standardised and modernised audit framework.
• Poland: The Ministry of Finance confirmed on 16 January 2026 that the use of the National e-Invoicing System (or KSeF) for issuing invoices is mandatory from 1 February 2026 for large taxpayers with sales exceeding PLN 200 million in 2024, and from 1 April 2026 for other taxpayers (small taxpayers are exempt from issuing invoices using the KSeF until the end of 2026). Finally, the government will waive penalties for infractions relating to the use of the KSeF during 2026.
• Portugal: Implementation of the mandatory e-invoicing qualified electronic signature and standard audit file for tax (SAF-T) accounting file requirements has been postponed to 31 December 2026 and 2028, respectively.
• Serbia: The Ministry of Finance announced on 5 December 2025 that a law has been approved to delay for one year the use of the new preliminary pre-filled VAT returns that were slated to apply from 1 January 2026.
• Switzerland: A public consultation launched on 5 December 2025 includes proposals to extend platform taxation to electronic services such as apps, games, films and music, and expand the enforcement powers of the tax authorities.
• Turkey: The full transition to the e-Archive invoice system has been postponed for an additional two years (to 1 January 2027) for certain small taxpayers, meaning covered taxpayers can continue to issue paper invoices below a specified threshold. Under a Ministry of Finance communique, taxpayers whose business income is determined under the simple method and those maintaining certain books may continue to issue paper invoices for transactions not exceeding TRY 3,000 during calendar years  2025 and 2026. The obligation to issue e-Archive invoices regardless of transaction value was scheduled to apply to all taxpayers as from 1 January 2026.
• United Arab Emirates: The Federal Tax Authority has released the VAT Guide on the Profit Margin Scheme, the first comprehensive resource on the topic. The guide consolidates the VAT Law, Executive Regulations and previous public clarifications into a single reference, providing direction on when the scheme may be applied, how “eligible goods” and “eligible transactions” should be interpreted and the methodology for calculating the profit margin and VAT. The guide contains examples and formalises the requirements for invoicing, recordkeeping and VAT return reporting.
• United States: On 14 January 2026, President Trump imposed a 25% tariff on a narrow set of AI chips and their derivatives. On 12 January, he announced that countries doing business with Iran would be subject to a 25% tariff if they trade with the US. Tariff increases on certain upholstered furniture, kitchen cabinets and vanities that were due to take effect on 1 January 2026 have been postponed for a year based on a proclamation issued on 31 December 2025, meaning that the current 25% duty rate will remain in effect until 1 January 2027. A notice published by the Office of the United States Trade Representative on 29 December 2025 announces an official Section 301 action targeting China's policies and practices in the semiconductor industry; new tariffs are imposed on semiconductors from China, starting at 0% on 23 December 2025 and increasing on 23 June 2027 to a rate to be announced.
• Zimbabwe: The budget for 2026 includes an increase in the standard VAT rate from 15% to 15.5% and the introduction of a digital services withholding tax that will apply in lieu of VAT on imported services for payments made to offshore digital platforms. The tax will be withheld by paying agents, including financial institutions.