The Swedish Finance Department has issued Directive Dir. 2026:9 to modernise VAT rules and strengthen anti‑fraud measures. It mandates a special investigator to assess how EU VAT rules for the digital age will be implemented in Swedish law, including digital reporting based on electronic invoicing for cross‑border transactions. The investigation must be reported by 30 November 2027.

The Chinese Ministry of Finance issued Announcement No. 15/2026 on Feb 2 2026, outlining interim measures for input VAT deductions on long‑term assets. The measures clarify the scope of long‑term fixed assets, set a 5 million‑yuan threshold for mixed‑use assets, and define the adjustment period for deduction. These rules apply to assets acquired from Jan 1 2026 or recognized before Dec 31 2025.

The Court of Justice of the European Union (CJEU) ruled that Spain cannot impose a stricter “directly and exclusively” requirement on VAT exemptions for services supplied by independent groups of persons. The decision clarifies that services must be directly necessary for the exempt activity, but exclusivity is not required, allowing general services such as cleaning to qualify. The ruling also states that competition distortion must be assessed on a concrete basis, not presumed.

China’s Ministry of Finance issued Announcement No. 11 on 31 January 2026, establishing new VAT and consumption tax rules for exported goods and cross‑border services. The announcement, effective 1 January 2026, sets criteria for VAT exemption, outlines refund rates and formulas, specifies consumption‑tax exemptions, and requires export tax refunds to be claimed within 36 months. It also repeals earlier notices.

The 2026 Finance Bill passed on 2 February 2026 establishes mandatory B2B e‑invoicing and B2C e‑reporting in France from 1 September 2026. Article 28 details the platform model, penalties, data transmission requirements and clarifies the roles of approved partner dematerialisation platforms and the Chorus Pro portal.

Poland’s Ministry of Finance clarified that non‑resident businesses are subject to KSeF e‑invoicing only if they have a Polish fixed establishment (SMPD/FE) that participates in the specific supply. The rule, effective 1 February 2026, does not trigger on a Polish VAT registration alone and requires a full assessment of the fixed establishment’s involvement per transaction.

China’s government has reclassified mobile data, broadband access, SMS and MMS as basic telecom services, raising the VAT rate from 6% to 9%. HSBC estimates the hike will reduce China Mobile’s 2026 net profit by 6%, China Telecom’s by 12% and China Unicom’s by 13%, with overall earnings for operators falling 6% to 13%. The change is expected to affect mobile operators’ revenue streams significantly in 2026.

Italy’s 2026 Budget Law introduces a €2 handling fee for low‑value shipments (≤ €150) from non‑EU countries, effective 1 January 2026. The fee applies to all business models and is collected by the Customs and Monopolies Agency upon final importation, with a transitional payment deferral for January and February 2026. Businesses must adjust customs declarations, accounting, and documentation to comply.

A leading global SaaS provider discovered that 10% of its customer tax IDs were missing or invalid, exposing over $9 million in potential annual VAT shortfalls. The article highlights gaps in the EU VIES system, varying validation frequency requirements across jurisdictions, and the operational benefits of automated tax ID validation.

Poland is set to roll back its Mandatory Disclosure Rules and simplify VAT compliance from 1 October 2026, while tightening enforcement through new limitation rules and faster overpayment recovery. The third‑party liability threshold will rise to PLN 5,000 and authorities may remit tax before the due date or determine property tax liabilities from existing data. These changes aim to reduce administrative burden and enhance enforcement against VAT abuse.

Reform UK has proposed cutting the VAT rate on hospitality from 20% to 10% as part of a rescue package for pubs and restaurants. The article argues that the move would undermine VAT neutrality, add administrative complexity, and likely fail to lower consumer prices. It also notes that Germany announced a similar 7% hospitality VAT cut in January 2026.

The French 2026 Finance Bill introduces a €2 customs charge on low‑value imports (≤€150) from non‑EU countries, effective 2026, targeting e‑commerce parcels. The measure is expected to raise about €400 million annually and is part of broader EU customs reforms, including a €3 interim levy from 1 July 2026 and a planned €2 levy across the EU by 2028.

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.

Poland has submitted a draft digital services tax to the legislative programme. The proposal would levy a 3% compensatory tax on digital services in Poland, applying to entities with global revenue over EUR 1 billion and Polish taxable revenue over PLN 25 million. Public consultations are set to start 2 Feb 2026, with no implementation date yet announced.

ATAF presented African viewpoints on VAT treatment of crypto assets and internationally traded services at the OECD Global Forum on VAT in Paris. The presentations highlighted practical, implementable approaches, clear VAT models for token exchange, and the development of a regional toolkit for non‑resident suppliers. The event underscored the importance of regional coordination and stakeholder engagement to align African realities with global VAT policy.

Croatia's Official Gazette published Ordinance No. 90, amending the VAT Ordinance. The ordinance introduces new reporting requirements for food donations, updates vehicle registration procedures to require proof of VAT payment, simplifies VAT documentation for nonresidents, clarifies invoice issuance rules, extends filing deadlines, and amends information reporting for specified goods.

The French Administrative Court of Appeal of Paris issued Decision No. 24PA02339 on Jan. 30, 2026, clarifying a company's liability for corporate income tax, social contributions, VAT, and payroll tax, and its eligibility for research tax credits. The court found the audit was not irregular and that a director’s driving course expense was not professional, granting only partial relief.

The Bahraini National Bureau for Revenue released updated guidance on VAT treatment of real‑estate lease incentives on 29 January 2026. The guide clarifies that rent reductions and rent‑free periods are exempt, while reimbursements for fit‑out contributions are taxable. It also provides examples of common lease incentives used by landlords.