Under new UK legislation, businesses will no longer pay VAT on goods donated to charity, effective 1 April 2026. The change removes the current requirement for VAT on free gifts to charities, while donated resale goods remain zero‑rated. The relief aims to reduce waste and administrative costs for businesses and charities alike.

Armenia has introduced a VAT exemption for electric vehicles effective from 1 January 2026. The exemption covers specific HS codes for the first month of the year and then applies only to vehicles manufactured after 31 December 2023 for the remainder of 2026. The change follows legislative amendments made on 17 December 2025.

Bloomberg Tax argues that digital services taxes (DSTs) are ineffective and distort the digital economy, citing low revenue and compliance burdens. The article highlights that several countries—including Canada, India, Malaysia, and France—have moved away from DSTs or are considering alternatives, and it advocates shifting to a VAT framework for digital services.

Brazil has approved a second law that operationalises its dual VAT system, introducing a federal CBS tax of 8.8% and a state/municipal IBS tax of 17.7% and replacing PIS, Cofins, ICMS and ISS. The legislation establishes a national governance body for IBS, provides sector‑specific rules, and sets a phased transition from 2026 to 2033.

The EU will abolish the EUR 150 customs duty exemption for small parcels from 1 July 2026, replacing it with a fixed EUR 3 duty per item if VAT is paid via IOSS. A Union‑wide customs handling fee will start in November 2026, while several Member States have already introduced national fees from 1 January 2026. Additionally, the EU will incentivise the IOSS mechanism for B2C distance sales from 1 July 2028 and is working to remove the EUR 150 threshold for IOSS.