March 2025 Tax Headlines: Global VAT News

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

Bahamas

The Bahamas government proposes VAT reduction on unprepared food from 10% to 5 which will take effect on April 1, 2025

Benin

Benin have extended VAT Exemptions for Gas, Vehicles, and SMEs until December 31st 2025

Burkina Faso

As of 1 January 2025, Burkina Faso has introduced 10% VAT on digital services sold to consumers.

On March 11, 2025, the 27 EU Member States unanimously adopted the VAT in the Digital Age (ViDAViDA or 'VAT in the Digital Age', is an EU initiative proposed by the European Commission that seeks to modernise and harmonise VAT processes for member states, by embracing new technologies. It is aimed at updating processes for the management of VAT, and reduce the VAT gap and fraud. The proposal also aims to address challenges in the area of VAT raised by the development of the platform economy.) package.

Finland

Due to backlash, Finland has canceled plans to raise VAT on candy and chocolate. The VAT on sweets and chocolate was proposed to be raised from 14 percent to 25.5 percent.

France

France has released an administrative doctrine on March 3rd outlining the VAT exemption thresholds that are now applicable in 2025.

Germany

The new coalition government (CDU and SPD) are set to permanently reinstate the 7% VAT rate on hospitality.

Italy

Italy has proposed a VAT cut on oysters to help boost sales and aid fishermen.

Malaysia

Malaysian Inland Revenue Board (IRB) has delayed their E-Invoicing mandate for small businesses.

Pakistan

Pakistan have implemented new E-Invoicing rules for Sales Tax, which includes new Sales Tax invoicing regulations, licensing and deadlines and integration and compliance requirements.

Poland

Poland extended VAT 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. for energy transactions until December 31, 2026, applying to trading electricity, gas, or emissions permits on an exchange.

South Africa

South Africa’s National Treasury has revised the VAT increase from 15% to 16% in two stages, but major political parties opposed the plan, leaving the budget’s approval uncertain.