The EU has tied part of a €90 billion loan to Ukraine to VAT reforms, demanding the country adopt a 20 % VAT on foreign parcels and a 20 % rate for simplified‑taxation companies with annual revenue above 4 million hryvnias. The loan will be disbursed in tranches in June, September and at year‑end, contingent on the reforms being finalized.

The Supreme Court dismissed Uttar Pradesh’s attempt to levy a 21% state VAT on natural gas transported from Andhra Pradesh to Uttar Pradesh, ruling the transaction is an interstate sale governed by the Central Sales Tax Act. The decision upheld a 2012 Allahabad High Court judgment that quashed UP’s assessment orders against Reliance Industries, Tata Chemicals and IFFCO. The ruling confirms that gas transported through common pipelines remains an interstate sale even when co‑mingled.

The Delhi government has lowered the VAT on Aviation Turbine Fuel (ATF) from 25% to 7% for airlines operating in the capital. The reduced rate will apply for an initial six‑month period, providing relief to airlines and passengers amid rising fuel costs.

Slovenia’s parliament approved emergency legislation that temporarily cuts VAT on a basket of staple foods to 5% and on household energy supplies to 9.5% for nine months, effective 17 May 2026. Businesses must update invoicing, pricing and ERP systems to reflect the new rates and ensure compliance with digital reporting requirements.

The Delhi government has reduced the VAT on aviation turbine fuel (ATF) from 25% to 7% effective 16 May 2026. The change applies to airlines purchasing fuel at Delhi airports, providing significant cost savings for the aviation sector.

Kenya's Finance Bill 2026 expands VAT coverage to include a wide range of digital financial and payment processing services, effective 1 July 2026. Commissions earned by payment service providers on these services will be standard-rated for VAT, replacing previous exemptions. The change requires PSPs to reassess VAT treatment, update invoicing systems, and review contracts and pricing structures.

Switzerland is considering legislation to extend the 3.8% reduced VAT rate for hotel accommodation until 1 January 2036, while the standard rate is set to rise to 8.8% in 2026. The current reduced rate expires on 1 January 2028 unless extended, and the Federal Assembly recently blocked any increase beyond 3.8%.

The EU's top court ruled that intercompany pricing adjustments between the former General Motors unit and Stellantis do not alter VAT liability, meaning the Portuguese government should not have increased the VAT bill for Stellantis. The decision clarifies that such pricing shifts are not subject to VAT adjustments.