In Nepal, households using more than 50 units of electricity per month are now subject to a 5% VAT on the excess consumption. The new rule applies from 17 July 2026, exempting the first 50 units while charging 5% VAT on any usage above that threshold.

France's digital services tax (DST) imposes a 3% rate on digital intermediation and targeted advertising services supplied by large firms when they exceed €750 million worldwide and €25 million France. The tax is calculated on taxable sums received, multiplied by a France-presence coefficient, and it creates a cascading effect that can disproportionately burden low-margin businesses.

Ireland has reduced the VAT rate for hospitality services to 9% from 1 July 2026, replacing the previous 13.5% rate. The change applies to restaurants, catering, hot takeaway food and hairdressing services, and will remain until 31 December 2030.

Germany faces significant VAT calculation errors due to inaccurate product master data, as illustrated by recent court rulings and rate changes. The article explains how misclassifications arise, the impact of legal updates such as Austria's new 4.9% rate, and recommends centralised VAT classification systems to avoid costly mistakes.

Croatia clarified the VAT treatment of pharmaceutical products imported without marketing authorization, confirming a 5% reduced rate for prescription medications with HALMED or EC approval. The clarification was issued by the Croatian Tax Administration on 25 June 2026.

Ireland's VAT Flat Rate Scheme for farmers is reviewed annually, with the flat-rate addition falling to 4.5% from 1 January 2026. The scheme allows unregistered farmers to add a percentage charge to invoices to VAT-registered businesses, compensating for input VAT.