- Iman Deschâtres
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This month in Paris, the 6th Meeting of the OECD Global Forum on VAT marked the 10th anniversary of the OECD International VAT/GST Guidelines, which have shaped VAT frameworks worldwide. These frameworks continue to evolve, with legislation moving faster and its impact being felt sooner across markets.
It means profit margins continue to be squeezed as new measures add complexity, uncertainty, financial exposure and reputational risk especially for e-commerce businesses and platforms where the risks are potentially multiplied. Now is the time to review your management approach and processes to ensure they are robust and able to address this fundamental paradigm shift.
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.
Japan
Japan is due to introduce a Consumption Tax on low-value goods from April 2028. Marketplaces will be deemed liable for the tax. Special valuation rules for customs treatment are also to be abolished as part of the 2026 tax reform proposal.
China
China’s January 2026 tax reform, along with the accompanying explanatory notes, is well explained in this article.
Vietnam
Vietnam’s January 2026 tax law increases the obligations of e-commerce platforms, particularly in relation to withholding tax and information-sharing upon request. More information is available here.
Low Value Goods
The following trend is accelerating, low-value goods exemptions are being phased out, while new levies on small parcels are emerging.
Chile
Chile’s VAT on low-value goods resulted in USD 41 million of VAT collected in the first quarter.
Thailand
Thailand is considering increasing import duty rates on low-value goods.
EU
The introduction of low-value parcel taxes in Italy and Romania has produced different outcomes.
In Italy, the tax is collected on imports. This has had a direct impact on freight activity, which declined in January as imports were rerouted to nearby logistics hubs.
In Romania, the tax is collected at the last mile, upon delivery. This approach has had the intended effect of increasing costs for consumers. In addition, the handling fee is not refunded if the goods are returned.
Turkey
From 6 February, simplified customs declarations for goods valued below EUR 30 are abolished.
Enforcement
Italy
Amazon has reached a settlement with Italian tax authorities for EUR 510 million (USD 582 million) to resolve a tax dispute. The settlement is understood to concern VAT liabilities of third-party sellers before the 2021 EU marketplace regime, relying on joint-liability rules. It is significant for marketplaces as it means that their liability can be engaged even in the absence of deemed supplier rules.
India
AI-based data analytics and targeted audits led to record GST collection increases in several Indian states in January.
Saudi Arabia
Saudi Arabia has extended its tax penalty waiver, under certain conditions, until July 2026 to encourage compliance and voluntary disclosure.
Azerbaijan
Azerbaijan introduces a 50% VAT base reduction for non-cash payments in selected sectors.
Eswatini (formerly Swaziland)
Eswatini is set to receive technical assistance from Ugandan tax experts to address VAT fraud.
UAE
From January 2026, the UAE has strengthened the enforcement powers of the Federal Tax Authority.
Other
- A new EU paper highlights the economic benefits of greater tax harmonisation at the EU level.
- France is reorganising its consumption tax legislation to improve clarity, potentially strengthening the enforcement of EU rules such as the marketplace deemed-supplier provisions.
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.
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