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July 2025 Tax Headlines: Global VAT News

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

EU

The European Commission has released its Annual Report on Taxation (ART), offering a comprehensive analytical overview of taxation trends and systems across EU Member States.

France

France’s tax authority, the Direction Générale des Finances Publiques (DGFiP), has officially become a Peppol Authority, supporting the adoption of the international e-invoicing standard ahead of the country’s mandatory e-invoicing and e-reporting rollout in 2026.

Australia

Starting July 1, 2025, Maryland will impose a new 3 % sales and use tax on a broad range of digital and IT services—such as cloud hosting, SaaS, data processing, web hosting, and software publishing—while pre‑July contracts, subscriptions, and bundled software remain exempt.

Estonia

The Estonian standard VAT rate rose from 22% to 24% on 1st July 2025.

Norway

As of 1 July 2025, the Norwegian Ministry of Finance opened a public consultation on the phased rollout of mandatory electronic invoicing and digital bookkeeping.

Mozambique

Mozambique has reinstated VAT exemptions on soap, sugar, and cooking oil—also extending them to the raw materials used in these industries—effective from May 30 to December 31, 2025, to reduce living costs and support domestic production.

Malaysia

Non-essential and luxury goods, such as king crab, imported fruits, racing bicycles and antique artworks will be subject to higher sales tax rates ranging from 5-10%. Service tax net widened to rental or leasing, construction, fee-based financial services, private healthcare and higher education for non-Malaysians.

Bhutan

5% GST set to replace Sales Tax and Excise Tax

Ethiopia

There is a delay on foreign providers obligations to register and collect VAT on B2C electronically supplied services.

Romania

The Romanian Prime Minister reintroduced a standard VAT rate increase from 19% to 21% on 2 July, effective from 1 August 2025. This change is expected to generate RON 6 billion (approximately €1.2 billion) annually.

Tanzania

The budget effective from 1 July 2025 expands the definition of online intermediation services to include online marketplace and network marketing platforms.

Slovakia

From 1st July 2025, Slovakia has introduced deferred import VAT for resident businesses, removing the need for cash payments on imports. This option will be extended to non-resident VAT-registered importers starting 1 January 2026.

Saudi Arabia

Taxpayers resident in Saudi Arabia, with a taxable turnover exceeding SAR2.5m during the calendar year 2022 or 2023, should comply with the Phase 2 e-invoicing requirements that are effective from 31st July 2025.

Canada

The Canadian government has announced it is withdrawing its 3% digital services tax.

Untied States

The US state of Utah is to withdraw the 200 transactions threshold for the obligation by foreign sellers and marketplaces.

Moldova

The Ministry of Finance has confirmed the phased launch of its mandatory e-invoicing rollout:

2025: Start of regulatory and technical documentation

Jan 2026: Pilot phase

Oct 2026: Full mandate