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April 2025 Tax Headlines: Global VAT News

Here is our round-up of all the newest tax snippets from April 2025 – featuring news of rate changes, regulatory updates and reclassifications across the world.

EU

The VAT in the Digital Age (ViDA) initiative hit its first milestone on April 14th. Some of the first measures have come into play.

Germany

The new coalition government confirms reinstatement of the 7% VAT rate on hospitality.

Poland

Poland is working on an amendment to various tax laws, including the Tax Ordinance and the VAT Act. The amendment introduces a mechanism allowing the extension of the standard five-year limitation period for tax liabilities by an additional 12 months.

France

France has amended rates on various supplies including electricity and natural gas fuel subscription, changing from 5.5% to 20%.

Japan

Japan is considering a temporary cut to the consumption tax, particularly on food items.

Canada

The Canadian province of Nova Scotia is to cut its Harmonised Sales Tax rate by 1% to 10% from 1 April 2025.  With the federal level 5%, that means the combined sale tax rate drops from 15% to 14%.

Rwanda

The Rwanda government has approved 1.5% Digital Services Tax on digital and electronic transactions.

Croatia

End of VAT reduction for heating, this will return to 25%.

Sri Lanka

From the 1st April non-resident sellers and marketplaces are subject to 18% Vat on B2C digital and electronic services.

Isreal

There are proposals to bring forward the six-phase rollout of its centralised Continuous Transaction Control (CTC) e-invoicing regime from January 2028 to June 2026.

India

Withdrawing its 6% Equalisation Levy from 1 April 2025.

Estonia

Currently, the VAT rate in Estonia is 22%, but the government has adopted an increase to 24%, which will take effect starting July 2025.

South Africa

The current VAT rate of 15% will rise to 15.5% starting on 1 May 2025.

Morocco

Starting in 2026, Morocco will implement mandatory electronic invoicing.

Brazil

Brazil is set to replace its complex indirect tax regime with VAT in a 2026-32 phased launch. This includes implementing VAT on banking, insurance and other financial services.