From 1 January 2026, a wave of jurisdictions will tighten enforcement of VAT and GST on cross‑border digital services, expanding scope, tightening registration triggers and integrating data‑driven compliance. The changes focus on stronger enforcement, refined liability rules and closer integration of transaction and payment data, affecting non‑resident digital service providers worldwide.

Latvia’s Cabinet Regulation, effective 1 January 2026, mandates structured electronic invoicing and reporting to the State Revenue Service (SRS) for all B2G, G2B, and G2G transactions, with B2B reporting becoming mandatory from 1 January 2028. The regulation specifies four delivery channels—e‑adrese, certified service providers, EDI, and email—each linked to a distinct SRS reporting method and requires XML invoices in UBL 2.1 or Peppol BIS Billing 3.0. Invoices must be reported within five working days of issuance, with contingency rules for technical disruptions.

The UK government has confirmed a mandatory e-invoicing regime set to launch in April 2029, covering B2B and B2G transactions. The plan likely adopts a four‑corner model using a localized Peppol standard, with phased implementation and potential incentives for SMEs. Businesses are urged to prepare early, engage in consultations, and assess technology and data readiness to meet the new compliance requirements.