- VAT Rate Increases: Several countries will see VAT rate hikes, including Indonesia raising its rate to 12%, Israel increasing from 17% to 18%, and Slovakia raising its standard VAT from 20% to 23%. The EU will also provide greater flexibility for member states in applying reduced VAT rates, expanding eligible categories from 21 to 29.
- E-Invoicing and Digital Reporting: Germany will implement a B2B e-invoicing mandate requiring businesses to receive electronic invoices. Romania will start reporting B2C transactions electronically, while Denmark will enforce digital bookkeeping requirements. Malaysia’s e-invoicing phase will target medium-sized businesses, mandating e-invoice generation for those with a turnover exceeding MYR 25 million.
- Sales Tax Changes in the U.S.: Louisiana will raise its state sales tax from 4.45% to 5% and expand the tax to digital goods. Kansas will eliminate the state sales tax on groceries, and Chicago will increase its Personal Property Lease Transaction Tax from 9% to 11%.
- New Special Regimes and Economic Nexus Rules: The EU will introduce updated VAT schemes for small businesses, and Alaska will remove its 200-transactions threshold for economic nexus, affecting local sales tax collection requirements.
- Platform Economy Regulations: Switzerland will classify platform operators as sellers for VAT purposes, requiring them to register if they generate over CHF 100,000 in sales. Additionally, the EU will update VAT rules for virtual events to determine tax based on the customer’s location.
Source Aleksandra Bal
