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2026 is set to be a interesting year, with e-invoicingElectronic invoicing - widely referred to as e-invoicing - is the exchange of a digital document between a supplier and a buyer. E-invoices are issued, transmitted and received in a structured data format that enabled automatic and electronic processing. They contain data in a machine-readable format so that an AP system can read an invoice without manual data entry, leading to faster and more efficient invoicing. mandates coming into force, various rate changes and new currencies being adopted. We’ve rounded up 26 VAT updates coming at the start of 2026.
Belgium
1st January 2026 – Launch of mandatory B2B Peppol-based e-invoicing. This applies to all transactions between Belgian VAT-registered businesses (resident companies, local subsidiaries, and non-residents with a Belgian fixed establishment).
Germany
The German Ministry of Finance has issued draft tax amendments for permanent 7% reduced VAT rate for food sales by hospitality businesses.
France
From 1st January 2026, France will abolish Regime 42, officially known as CPC 42 00, for non-EU importers. It was designed as a VAT simplification mechanism, allowing companies to import goods into one EU member state and then immediately ship them to another EU country without paying import VAT at the border.
Now, only an EU buyer or their appointed representative can act as the importer under Regime 42.
Italy
As it stands, from 1st January 2026, a new consolidated code on value added tax is set to take effect. This long anticipated “Testo Unico IVA” (new VAT code) will streamline decades of fragmented VAT legislation into a single, coherent framework.
Netherlands
January marks the end to 9% accommodation services reduced rate, switching back to the standard rate of 21%.
Finland
A 0.5% cut to reduced rate was confirmed back in September. From January, it will stand at 13.5% on food, accommodation, passenger transport and many other services. There will be no change to the 25.5% standard rate.
Poland
2026 marks quite a big change for Poland with various amendments to tax laws, most notably the Tax Ordinance and the VAT Act. The proposed reform is to simplify and clarify existing regulations.
Changes include but are not limited to: 12 month extension to limitation period, streamlining overpayment refunds and clearer guidelines on how tax authorities may determine the correct value of VAT refunds or input tax to be carried forward.
Portugal
A set of targeted VAT measures are set to prioritise sectors viewed as economically or socially significant, including agriculture production, commercial art market and animal welfare.
Two adjustments address pressures in the farming sector; with a 6% reduced rate applying to olive oil production, as well as a VAT exemption for fertilisers, seeds and soil enhancers throughout 2026.
Slovakia
Back in September, the Slovakian Parliment approved a fiscal consolidation package, which includes targeted VAT increases to encourage healthier choices. Under the plan, the standard 23% rate will apply to foods with high sugar or salt content.
Slovenia
Slovenia to introduce VAT groups, including the option for related taxpayers to join under a single VAT number for reporting and exempt intra-group invoicing.
Brazil
2026 brings the phased introduction of CBS and IBS taxes pilot. Brazil will move gradually from its current system to the new dual VAT regime (CBS and IBS) over a seven-year transition period (2026–2032), reaching full implementation in 2033.
In 2026 –
- CBS (federal VAT) introduced at 0.9%, and IBS (state/municipal VAT) at 0.1%, for testing only.
- Existing taxes remain in force
- Businesses can offset CBS/IBS amounts against PIS, COFINS, or other federal liabilities.
China
The first consolidated VAT law will come into effect on 1st January 2026. VAT rates and other key elements remain consistent with the existing system.
Bulgaria
Bulgaria is to adopt Euro currency, making it the 21st member. You can read more here.
Croatia
Mandatory e-invoicing B2GCommerce between business to government. and B2B – between resident businesses; e-reporting submissions of invoices not subject to e-invoicing mandate. Non VAT registered businesses must be able to accept e-invoices.
UAE
VAT amendments coming into effect:
- Removal of self-invoice requirement for reverse chargeWhen the Reverse Charge (mechanism) is in effect, the recipient of goods or services assumes responsibility for reporting both the purchase and the supplier’s sale in their VAT return.
- Statutory limitation period for refund claims
- Denial of input tax deduction where linked to evasion
Morocco
Early 2026 phased launch of e-invoicing with large taxpayers.
Bhutan
The much-postponed introduction of Goods and Services Tax to Bhutan is set to start in January 2026. The new GSTGoods and Services Tax rate is expected to be 5% on domestic supplies and imports, replacing a range of sales taxes which overlap.
Illinois, USA
Illinois Governor JB Pritzker is completing legislation that withdraws one of the two thresholds for out-of-state / foreign or remote sellers to trigger state sales tax collection obligations.
From 1st January 2026, only if non-resident sellers exceed $100,000 sales to Illionois customers will they have to begin charging state sales tax.
Maine, USA
An extension of 5.5% state tax to streaming platforms and broadens digital services already subject to tax.
Azerbaijan
Non-resident providers of digital services to Azerbaijani consumers will be mandated to register with the tax administration and levy 18% VAT.
Malaysia
The fourth wave of e-invoicing is still going ahead. Taxpayers above RM1 million will be joining the mandate.
Austria
As part of a wider trends toward fairer, gender-conscious tax policy, Austria has joined a growing list of countries to introduce a 0% VAT rate on feminine hygiene products and contraceptives, eliminating the so-called “tampon tax”.
Zimbabwe
A 0.5% rise to VAT is effective 1st January 2026. Standard VAT rate to increase from 15% to 15.5%.
Angola
Obligation to issue e-invoices for most supplies of goods and services for large taxpayers with annual sales above AOA 25 million (approx €25,000) with a 3-month soft landing phase until 31 Dec 2025 with no fines for infringements and option to continue to use paper-based invoices.
Saudi Arabia
Marketplaces take on non-resident digital services VAT obligations as of January 2026.
Liberia
A 1% rise to the Goods and Services Tax from 12% to 13%.
