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May 2026 tax headlines: Global VAT news

Here is our round-up of all the newest tax snippets from May 2026 – featuring news of rate changes, regulatory updates and reclassifications across the world.

Germany

Germany’s Federal Ministry of Finance (BMF) has updated the VAT treatment of German VAT Groups (Organschaft). The new letter amends the VAT Application Decree (UStAE) and expands situations where intra-group transactions may trigger VAT consequences.

Morocco

Morocco launches VAT portal for foreign digital suppliers. From 11th June 2026, foreign suppliers with no establishment in Morocco providing services such as streaming, software or data storage to non-VAT registered customers in Morocco must use the SIMPL portal for VAT registration, filings and payments.

Austria

The Austrian Parliment passed a draft bill to reduce the VAT rate on selected staple foods. From the 1st July, the VAT rate will be cut from 10% to 4.9%.

United Kingdom

From 25th June to 1st September, a temporary emergency VAT reduction from 20% to 5% on selected family-focused activities and meal during summer holidays will apply.

Belgium

For the first time since go-live in January, Belgium Authorities have updated their FAQs page, clarifying invoice rejection, reverse charge treatment and delivery monitoring.

Ukraine

Ukraine is preparing to abolish its VAT exemption for imported parcels valued under €150 from 2027, in a major reform aimed at tackling tax avoidance.

Poland

Poland have confirmed cut from 21% to 8% rate for fuel has been extended until 31st May.

Switzerland

Switzerland is considering legislation to prolong the 3.8% hotel accommodation rate until 1st January 2036.

Ireland

The Irish Revenue has confirmed and issued guidance on the permanent reduction to VAT rate on food, catering and hairdressing services from 13.5% to 9%.