Latvia will lower the VAT rate on a range of essential food items from 21% to 12% effective 1 July 2026, following an agreement between the Ministry of Economics and retailers. The change covers bread, milk, poultry products, eggs and flour, and is designed to be fully reflected in consumer prices. The move is part of a broader low‑price basket initiative aimed at easing food costs for residents.

The UK will apply a temporary 5% VAT rate to children's meals, admission tickets to theatres, cinemas, concerts, exhibitions, shows, and family attractions from 25 June 2026 to 1 September 2026 inclusive. The reduced rate ends on 1 September 2026, after which the standard rate resumes.

From 1 January 2026, Italy has enacted a new automated VAT assessment regime for omitted annual returns, allowing the tax authority to calculate VAT due using e‑invoicing and other digital data. The automated determination must be completed by 31 December of the seventh year following the missing return, and penalties are capped at 120% of VAT due, reducible to one‑third if paid within 60 days of notice.

Ukraine will abolish its VAT exemption for imported parcels under €150 from 2027, requiring marketplaces to collect 20% VAT at point of sale. Citizen‑to‑citizen parcels under €45 will remain exempt if free and not for resale. The reform, based on draft laws 15112‑D and 12360, is expected to raise about UAH 10 billion annually.

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.

Morocco’s General Directorate of Taxes (DGI) has launched a new online platform for collecting VAT on remote digital services. Non‑resident companies providing digital services to Moroccan customers must register, obtain a tax ID, file quarterly declarations and maintain transaction registers from 11 June 2026.

Serbia has introduced significant amendments to its VAT Rulebook, effective from the April 2026 VAT period. Key changes include mandatory SEF self‑invoicing using the “Individual VAT Record – Internal account” document type, new rules for VAT base estimation, adjustments, discounts, and goods returns, and simplified timing and consolidation of adjustment documents. These reforms tighten compliance and digital reporting requirements across the country.

UAE's Ministry of Finance has extended the deadline for large taxpayers to appoint an Accredited Service Provider (ASP) to 30 October 2026, while keeping the mandatory e‑invoicing go‑live dates unchanged. Large businesses must issue e‑invoices via the Peppol network in PINT AE format from 1 January 2027, with smaller businesses and government entities following in July and October 2027 respectively. The amendment also introduces a white‑label mechanism for ASP accreditation, allowing UAE‑based firms to partner with international technology providers.

The Ministry of Finance has extended the deadline for appointing Accredited Service Providers (ASP) for e‑invoicing to 30 October 2026 for businesses with annual revenues above AED 50 million. The mandatory implementation deadline remains 1 January 2027. The amendment also introduces a white‑label framework enabling UAE firms to partner with international providers.

Utah has enacted legislation extending sales and use tax to a broad range of digital products and subscription-based services effective 1 July 2026. The new rules tax payments for access to digital audio/video, streaming, gaming, e‑books, music, SaaS, and cloud‑hosted software, with a 4.7 % rate and a $100,000 remote‑seller threshold. Existing services under the Multi‑Channel Video or Audio Service Tax Act remain exempt to avoid double taxation.

Sweden’s Parliament approved a proposal that will allow the Swedish Tax Agency to conduct online audits of businesses’ cloud accounting and VAT records starting 1 April 2026. The new powers remove the ban on internet access, enabling auditors to log in directly to live systems via read‑only profiles or secure APIs, even when the taxpayer does not cooperate. The change also updates evidence rules to support remote examination of electronic records and is part of a broader move toward structured e‑invoicing and digital compliance.

A new Swedish bill adopted on May 6 2026 empowers the Swedish Tax Agency to deny input VAT credits for significant excess amounts during audits. The change expands the agency’s authority to challenge VAT recoveries that exceed allowable limits, requiring businesses to review their input VAT claims for compliance.

EU finance ministers endorsed an amendment to Regulation (EU) No 904/2010 that will allow OLAF and EPPO to query Member State VAT systems, but the amendment restricts access to read‑only, case‑by‑case searches and bans bulk extraction or AI analysis. The measure is pending Parliament approval, likely in July 2026, and will be routed through VIES, CESOP and Eurofisc channels.

The European Commission’s proposed EU bill would require member states to share VAT data with anti‑fraud agencies, but Spain has raised objections over data access provisions and inconsistencies. The proposal, introduced in November, seeks to strengthen cooperation against VAT fraud, which the Commission estimates costs the EU €90 billion annually. Spain plans amendments ahead of the upcoming EU finance ministers meeting.

Brazil introduced a new federal CBS tax on digital services effective 1 January 2026, replacing PIS and Cofins. The consolidated rate of 26.5% (CBS 8.8% + IBS 17.7%) applies to non‑resident providers and marketplaces, which must register and comply with Nota Fiscal e‑invoicing. B2B customers can self‑account, while B2C transactions are subject to collection by the provider.

Greek tax authorities have introduced a new framework that will reassess fines issued from 19 April 2024, cutting penalties by up to 80% and setting a standard €100 fine for late or missing filings that do not create a tax liability. The reform also eliminates the €250/€500 penalties for low‑value withholding tax declarations and removes fines for cases where the additional tax payable is below €100.

Brazil has enacted Decree No. 12,955, establishing a federal Contribution on Goods and Services (CBS) for digital services. The decree imposes destination‑based taxation on non‑resident suppliers, requiring registration and tax collection on B2C sales, while B2B transactions are subject to reverse charge. Platforms that facilitate services become deemed suppliers, responsible for collecting and remitting CBS.

HMRC has announced new VAT road fuel scale charges for petrol and diesel vehicles in the UK, effective from 1 May 2026 and lasting until 30 April 2027. The charges vary by CO2 emissions and accounting period, with specific rates for 12‑month, 3‑month and 1‑month periods. Businesses must adopt the new scales from the next prescribed accounting period beginning on or after 1 May 2026.