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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.
Italy
Italy is planning regulatory changes to permanently reduce VAT on works of art, antiques, and collectables—potentially aligning with the EU’s lowered art VAT rates—to boost domestic art sales, support cultural operators, and enhance competitiveness.
USA – Maryland
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
Estonia’s parliament has confirmed that the previously temporary increase in its standard VAT rate—from 22% to 24%—will now become permanent beginning 1 July 2025, with reduced rates also rising and a shorter transition period for older contracts.
France
France’s tax authority now treats company cars provided to employees—where part of the salary is exchanged or foregone—as a VAT‑taxable service (with VAT correctly due in the employee’s country of residence and recoverable on acquisition costs), and companies should review their vehicle‑use policies accordingly.
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.
Vietnam
Vietnam’s National Assembly has extended the temporary VAT cut—lowering the standard rate from 10% to 8%—to targeted sectors including fuel, coal, IT, transport, tourism, and accommodation until December 31, 2026, aiming to support economic growth while excluding telecoms, finance, real estate, insurance, metals, and special‑tax items.
Lithuania
Lithuania’s parliament has approved plans to raise its reduced 9 % VAT rate to 12 % on items like accommodation, catering, hotels, cultural events, passenger transport, and digital publications starting January 1, 2026, while retaining the 21 % standard rate and the 5 % super-reduced rate on essentials.
Tanzania
In Tanzania’s 2025–26 budget, effective July 1, 2025, VAT is being reshaped to broaden the tax base: new exemptions include reinsurance transactions; gaming supplies lose their exemption; zero‑rating applies to specific textiles (for one year) and fertilizers (for three years); VAT is expanded to online marketplaces and non-resident payment providers; a reduced 16% rate replaces the 18% margin on B2C e‑commerce; and a new 3% VAT collection mechanism on payments to registered vendors is introduced.
Finland
Finland’s government has proposed reducing the reduced VAT rate from 14% to 13.5%—applying to items like food, medicines, passenger transport, accommodation, cultural events, books, and sports—effective 1 January 2026, as part of its 2026–29 fiscal plan to support low- and middle-income households and stimulate economic growth.
Romania
Romania will eliminate most preferential VAT rates from August 2025—retaining reduced VAT only on food and medicines—while maintaining its standard 19 % rate.
Croatia
Croatia’s parliament passed its Fiscalization Act on 11 June 2025, introducing mandatory real-time B2B and B2GCommerce between business to government. e‑invoicing (based on EN16931) for all VAT‑registered businesses from 1 January 2026, following an optional testing phase from 1 September 2025 and extending the e‑invoice requirement to non‑VAT entities from 1 January 2027.
Philippines
The Philippines has enacted VAT on non-resident digital services: starting 1 June 2025 (with registration due by 1 June, extended to 1 July), non-resident digital service providers must collect or face reverse-charge: 12 % VAT on B2C services, while B2B transactions are VATed via withholding by Philippine buyers; compliance is via the new VDS Portal without requiring a local agent.
