- Iman Deschâtres
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The geopolitical picture hasn’t improved. Governments are still responding the same way: targeted indirect tax reductions to shield populations from inflation that continues to bite.
Latvia and Ireland within the EU, and further afield Australia, Vietnam, the Philippines, Kenya and Cambodia, have all discussed or introduced measures focused on reducing tax on fuel and everyday essentials.
The fiscal trade-off is the same as it’s been. Revenue foregone now will need to be recovered later. For businesses, the more immediate pressure is operational: every rate change has to be identified, assessed and reflected in systems quickly and accurately.
The pace of change shows no sign of slowing. For tax and finance teams, that means the demands on your processes and infrastructure remain as real as ever.This is a glimpse of what caught my attention…and as you read the plethora of changes and consider the challenges they present especially to marketplaces and their sellers, keep in mind that only the right system can enable growth and open new markets without financial or reputational risk. Of course, I note that any observations and comments are solely my own opinion and view, and not intended to be the provision of advice. You should not rely on these without checking with your own tax, legal and financial advisors.
US
Colorado and Indiana recently reviewed what qualifies as a Marketplace Facilitator liable for sales tax. They respectively confirmed that a payment processor is not a deemed seller, nor is a tech developer providing auction software. These Department of Revenue rulings show that marketplace facilitator rules can be broad and may encompass scenarios beyond traditional marketplaces.
EU
The Group on the Future of Value-Added Tax (GFV) of the European Commission has published the minutes of its 51st meeting, which took place on 3 March 2025. The meeting covered discussions on the platform economy, one-stop-shop (OSS) guidelines, single VAT registration (SVR) and digital reporting requirements.
Poland
Poland issued a draft regulation on the implementation of ViDA. It includes a clarification of platform liability for B2B transactions when the supplier is not established in the EU that will apply from January 2027.
Sri Lanka
Implementation of VAT on digital services by nonresidents was postponed again, to July 1, 2026. The law was due to come into force on April 1. The notice announcing the delay was issued on March 31, the day before it was supposed to take effect.
Low Value Goods
The following trend is accelerating, low-value goods exemptions are being phased out, while new levies on small parcels are emerging.
Russia
As Russia considers taxing imported goods, e-commerce groups have proposed phasing in the 22% VAT until 2029. This gradual approach aims to maintain the current market structure and discourage foreign sellers from establishing local warehouses to avoid the levy.
Enforcement
UAE
From 1 January 2026, UAE businesses can lose input VAT claims if they knew or should have known a transaction was connected to VAT fraud, placing greater responsibility on businesses to verify suppliers and transactions.
Vietnam
Vietnam’s Department of Taxation has launched thematic tax audits for 2026. Businesses that continuously declare losses while expanding investment or maintaining significant revenue are prioritised, with audits focusing on revenue recognition, VAT declarations, costs and related party transactions.
Other
- The OECD published its Tax Administration 2025 report, covering the use of AI by tax administrations. Worth a read.
- Etsy is increasing its Regulatory Fee to pass up local taxes to sellers.
- Ecuador’s tax authority confirmed through a circular that VAT at 15% applies to digital services, with financial institutions acting as withholding agents where the supplier is not registered in Ecuador.
Disclaimer: The views, statements or opinions expressed in this article are solely those of the author and do not represent tax advice and are not to be designated to be the views, statements or opinions of any other person, group, association or company.
Image by: Chris_Willemsen
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