Belgium has mandated electronic invoicing for VAT‑registered organisations since 1 January 2026. However, widespread technical problems with the Peppol platform and accounting software have caused invoices to be lost, duplicated or delayed, threatening to miss the 25 January VAT‑return deadline. Accountants have requested a three‑day extension and exemption from penalties if the issues can be proven.

The European Court of Justice ruled in Case T-363/25 that VAT deductions cannot be claimed on re-invoiced supplies when the underlying transaction structure is deemed fictitious. A Hungarian automotive parts trader was denied input VAT deduction on purchases from German suppliers re-invoiced through a domestic intermediary.

The Bahamas will remove VAT from all food items previously taxed at 5% effective April 1 2026. The zero‑rate will cover unprepared groceries such as fresh produce, baby food, frozen foods, meats, staples, milk and eggs, but excludes prepared meals and restaurant food. The change aims to ease cost‑of‑living pressures.

China will scrap value‑added tax rebates on photovoltaic products from April 2026, ending the export rebate for PV modules. Between April and December 2026, battery product rebates will be cut from 9% to 6%, and the full removal of PV rebates will take effect on 1 January 2027. The policy shift follows a November 2024 reduction of solar wafer, cell and module rebates from 13% to 9%.

The Romanian National Agency for Fiscal Administration (ANAF) has set key filing dates for January 2026, covering VAT registrations, returns, social contributions, withholding tax, and One‑Stop‑Shop (OSS) submissions. The deadlines vary by taxpayer type and transaction profile, with specific dates for quarterly VAT taxpayers, registration changes, and December 2025 related filings.

Ukraine requires electronic invoicing for taxpayers with annual revenue above UAH 1 million, and mandates SAF‑T reporting for SMEs since 1 Jan 2023 and for large enterprises since 1 Jan 2022. The Cabinet adopted a two‑year experimental e‑TTN project on 30 May 2024, which will become mandatory after the trial period, eliminating paper consignment notes.

The Supreme Court of India clarified that a 'part' of machinery must functionally participate in the machine’s operation, while structures that merely support do not qualify. It reaffirmed that tariff classification is a rule‑based exercise grounded in the Customs Tariff and HSN, and that end‑use is not determinative unless the tariff allows it. The ruling also confirmed that HSN explanatory notes carry binding interpretive value.

The Danish government is debating a VAT cut on food, with Prime Minister Mette Frederiksen favoring a general reduction rather than eliminating VAT on fruit and vegetables. The Moderates propose scrapping VAT on fruit and vegetables, while the Liberals have not set a specific cut amount. The government says a full cut cannot be implemented by this year's elections due to technical reasons.

The Deloitte TaxScape weekly VAT news update covers a First‑tier Tribunal ruling that allows Littlewoods to recover full input tax on photography costs, the withdrawal of HMRC’s linked‑goods concession under the ESC, and significant changes to the EU Deforestation Regulation effective 30 December 2026 for large and medium businesses. It also notes the removal of printed materials from the EUDR scope and the publication of these changes in the Official Journal on 23 December 2025.

The OECD released a report on 10 January 2026 outlining Digital Continuous Transactional Reporting (DCTR) for VAT, aiming to standardise e‑invoicing and e‑reporting across jurisdictions. The guidance covers planning, digital invoicing foundations, compliance support, data security, interoperability, and long‑term sustainability. It seeks to reduce compliance costs and fraud while promoting cross‑border consistency.

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.

Croatia has made e-invoicing mandatory for B2B and B2C transactions for all VAT-registered businesses from 1 January 2026, with a second stage extending the requirement to non‑VAT entities on 1 January 2027. The mandate, known as “Fiscalization 2.0”, was implemented in two stages and follows the ordinance published on 17 December 2025. The Croatian Tax Authority has denied reports of system instability and will not grant a grace period.

Mexico’s 2026 Tax Reform introduces significant VAT changes, including non-creditable VAT on insurance claims settled in kind and new digital reporting obligations for platforms. Digital platforms must provide online access to transactional data, upload detailed supplier information daily, and retain records for five years. The reform also removes the ability of Collective Financing Institutions to substitute legal entities for VAT withholding on interest paid to individuals.

The UK First‑Tier Tax Tribunal clarified that caregivers supplied to nursing and residential care homes are not VAT‑exempt unless they are registered medical professionals or supervised as required. The tribunal found that the taxpayer's services did not meet the exemption criteria and no other exemptions applied. The decision was issued on 16 December 2025.

Cyprus Tax Agency extended the filing and payment deadline for certain VAT obligations to Jan. 20, 2026. The extension covers VAT returns for the period ended Nov. 30, 2025, VIES summary tables for December 2025, and flat‑rate declarations for the special urban taxi regime. Late filing may incur a 10% additional VAT and a €100 penalty.

The BFH ruling confirms that input tax can be deducted for the renovation of a historic castle even when financed by public grants and private donations, provided there is an entrepreneurial intent to generate taxable rental income. The decision clarifies that financing does not affect deduction, requires a clear allocation between private and taxable use, and mandates that the tax office determine the exact deductible share.

Italy’s 2026 Budget Law introduces several indirect tax measures effective 1 January 2026, including a new €2 levy on small shipments into the EU, a change to the VAT base for barter transactions, and automatic VAT settlement for non‑filing taxpayers. The law also postpones the plastic and sugar taxes to 1 January 2027 and the new consolidated VAT code will take effect on 1 January 2027.

Foreign investors in Indonesia must register for VAT once their annual turnover exceeds IDR 4.8 billion (US$300,000). After registration, all VAT invoices must be issued and validated through the e‑Faktur system, with monthly reporting and reconciliation required. Non‑compliant invoices and inconsistencies between invoices, returns, and accounting records can trigger audits and penalties.

China’s Ministry of Finance and State Taxation Administration announced that from 1 April 2026, VAT export rebates for e‑cigarette products will be cancelled. The change also reduces battery product rebate rates and eventually cancels them, requiring exporters to adjust customs declarations accordingly.

North Macedonia has begun the pilot testing phase of its new e-invoice system, e‑Faktura, on 5 January 2026. The state‑owned platform will allow real‑time, direct communication between businesses and the tax authority, with test invoices having no legal effect. The rollout will include a client application by the end of Q1 2026, a production server by the end of Q2 2026, and mandatory adoption from Q3 2026.