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2026 is set to be another pivotal year for VAT. Following a period of accelerating tax reform, governments are pressing ahead 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, VAT rate adjustments, scope expansions and broader digitalisation initiatives.
In this blog, we’ve rounded up 15 key VAT changes taking effect in 2026 that businesses should have on their radar.
Brazil
In 2026, Brazil is implementing a major tax reform, replacing federal and state taxes (PIS, COFINS, ICMS, ISS) with two main indirect taxes (CBS and IBS) as part of a phased rollout through to 2033.
China
China’s first comprehensive VAT Law came into force on 1st January 2026, creating a consolidated legal framework for VAT.
Kazakhstan
Kazakhstan VAT reforms came into effect on 1st January 2026. The aim is to modernise and improve the current tax system. The reform includes changes to VAT, Corporate Income tax, Social Sector Tax, Progressive Taxation and Excise Taxes.
Mauritius
Effective from 1st January, Mauritius is imposing a 15% VAT rate on digital services supplied by foreign companies to consumers in the country, extending the VAT base to cover cross-border digital services.
Belgium
B2B e-invoicing became mandatory from 1st January 2026 in Belgium. All VAT registered businesses must issue and receive structured electronic invoices. A three month grace period will apply until March 2026.
France
France will make B2B e-invoicing and related e-reporting compulsory from 1st September 2026 for large and medium-sized companies, with all businesses required to be able to receive e-invoices from that date.
Canada (Manitoba)
From 1st January 2026, Manitoba expanded its retail sales tax to cover cloud computing services, regardless of server location or download. The province estimates the change will raise around CAD 16 million per year and reduce distortions between local and foreign providers.
USA (Illinois)
The 1st January marked the end of the 200-transaction economic nexus threshold (leaving only the $100,000 sales threshold).
Lithuania
A new reduced rate of 12% on accommodation, passenger transport and cultural services, as well as a 5% VAT rate on books and publications, all in effect since 1st January 2026.
Ghana
In 2026, Ghana will implement VAT and indirect tax changes, including reducing the effective VAT rate to 20%, removing the COVID‑19 Health Recovery Levy, raising the VAT registration threshold, exempting mineral exploration from VAT, and extending zero‑rating for local textiles.
Portugal
Portugal will implement tax and indirect tax changes, including a VAT group regime from 1st July for consolidated reporting, updated VAT filing frequencies based on turnover, a corporate income tax rate reduction to 19%, and other adjustments to indirect taxes.
UAE
The UAE has amended its VAT rules to simplify compliance and align with international standards. Key changes include removing the requirement to issue self-invoices under the 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. mechanism (businesses must instead retain supporting documentation), and establishing a five-year time limit for claiming excess VAT refunds.
Bulgaria
Bulgaria is to adopt Euro currency, making it the 21st member. You can read more here.
Oman
First wave of the B2B e-invoicing mandate coming in August.
- Jan: design phase with OTA
- Feb: developer test portal available
- May SP registrations and accreditation
- Aug: First wave with 100 largest taxpayers, plus voluntary registrations;
Greece
Greece will introduce mandatory electronic invoicing.
- Feb: Large businesses with revenues above €1 million in 2023 must adopt electronic invoicing from 2 February 2026.
- Oct: All remaining taxpayers must adopt the system.
