The blog outlines confirmed and proposed VAT rate adjustments across several countries effective in 2026, highlighting significant reductions and increases that will impact pricing, invoicing, and compliance for multinational businesses. Key changes include Finland’s 13.5% reduced rate, Germany’s 7% cut for hospitality, and Kazakhstan’s 16% standard rate hike. Businesses are urged to update ERP systems and review contracts to avoid penalties.

The Court of Justice of the EU ruled that year‑end transfer‑pricing adjustments that increase profits to align with the arm’s‑length principle may be considered VAT‑eligible if the services and payment terms were agreed in advance. Documentation for input‑VAT deduction remains necessary and proportionate, but taxpayers need not prove economic necessity of the services. The ruling clarifies that VAT applies only where a clearly identifiable service is provided for remuneration, providing legal certainty across Member States.

KPMG China outlines the key provisions of the newly issued Implementation Regulations of China’s Value‑Added Tax Law, which came into force on 1 January 2026. The regulations refine definitions of taxable transactions, clarify zero‑rate eligibility for cross‑border services and intangible assets, and provide detailed guidance on VAT deduction and exemption criteria. Taxpayers should review the new rules to ensure compliance and optimize VAT management.

The article highlights that businesses can still recover VAT incurred in 2025, with a 4‑5 year domestic window and a 1‑year foreign window. It outlines common recovery gaps—missed foreign claims, incomplete invoices, missed deadlines, and conservative claiming—and promotes a technology‑enabled approach to maximise cash flow. Fintua’s platform automates validation, centralises claim tracking, and reduces audit risk.

The article explains that from July 2028 the EU’s ViDA Single VAT Registration will eliminate the call‑off stock simplification, making cross‑border inventory movements taxable and digitally reportable immediately. It outlines the need for businesses to use OSS or local VAT registrations, highlights the risk of legacy systems, and promotes modern single‑engine platforms such as VATCalc to meet the new compliance requirements.

Bloomberg Tax’s analysis outlines how the EU’s ViDA reform and global digital reporting mandates will reshape VAT compliance in 2026, with several EU member states implementing e‑invoicing and real‑time data transmission ahead of the 2030 deadline. The article highlights the growing role of AI in detecting non‑compliance and the implications of the 2025 CJEU Arcomet ruling on transfer‑pricing adjustments. Businesses are urged to modernize invoicing, automate data flows, and align internal processes to meet the new digital and AI‑driven compliance requirements.

The year 2026 marks a shift in how low‑value goods entering the EU are taxed, with the EU introducing a flat €3 customs duty and a planned €2 handling fee, while several member states enact national measures. These changes aim to streamline customs processing and increase revenue from low‑value e‑commerce parcels.