- Iman Deschâtres
- 0 Comments
- 640 Views
New rules. Expanded scope. Sharper enforcement. The pressure on in-house tax teams has never been greater.
From Brazil’s dual VAT reform to the spread of digital services taxes across Africa, the phase-out of low-value goods exemptions and increase of investigation powers, the pace of change is relentless and shows no sign of slowing. For tax and finance teams, that means the demands on your processes and infrastructure remain as real as ever. Keeping up requires tools that are flexible and built to adapt.
Here 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.
Brazil
As part of Brazil’s long-standing tax reform, Decree No. 12,955 of 30 April 2026 marks a key step in the transition from PIS/COFINS to a dual VAT model. It introduces a clear framework for taxing cross-border supplies of goods, services, intangibles and rights under the new CBS (Contribution on Goods and Services). Non-resident suppliers must navigate a dual system involving registration, e-invoicing, and split payment mechanisms where payment service providers remit tax directly to authorities while joint liability remains. Digital platforms are treated as deemed suppliers, with the CBS obligation of foreign sellers transferred to them.
Qatar
Qatar’s Finance Minister confirmed VAT is coming “very soon”. Regional instability affecting hydrocarbon revenues has accelerated what was previously framed as GCC harmonisation into a domestic fiscal necessity. The Cabinet also approved a draft e-invoicing law in the same month.
Africa
Four jurisdictions have introduced or confirmed new rules for non-resident digital service providers in recent months, reflecting a clear regional trend from intent to implementation.
Rwanda introduced VAT on digital services effective 29 April 2026, covering streaming, ride-hailing, cloud and advertising services, with registration required from both local and foreign suppliers. Malawi followed with a 17.5% VAT on foreign digital services effective 15 April 2026, targeting B2C supplies with no registration threshold. Botswana brings its 14% VAT into force on 1 June 2026, with a BWP 500,000 registration threshold, mandatory local representative and quarterly filing obligations. Togo rounds out the picture with an 18% VAT on non-resident digital services under its 2026 Finance Law.
Grenada
Grenada introduced the VAT (Amendment) Bill 2026 in April 2026, extending VAT to digital services supplied by non-resident providers, with implementation expected in 2027 following parliamentary approval and a transition period.
Low Value Goods
The following trend is accelerating, low-value goods exemptions are being phased out, while new levies on small parcels are emerging.
Ukraine
As part of its IMF cooperation commitments, Ukraine has proposed ending the VAT exemption on low-value imports up to €150, with the new rules set to take effect on 1 January 2027. The draft law shifts VAT collection responsibility to electronic platforms facilitating cross-border sales to Ukrainian consumers, aligning Ukraine with the EU model adopted under the 2021 e-commerce VAT package.
Moldova
Moldova is removing the VAT exemption on low-value parcels under €150, with a standard 20% VAT applying to all such imports from 1 October 2026. Finance Minister Andrian Gavriliță framed the move as eliminating an existing exemption rather than introducing a new tax, aligning Moldova with EU practice and addressing the competitive imbalance between foreign online sellers and domestic retailers.
Austria
Austria has proposed a €2 delivery levy on large e-commerce players for distance sales starting October 2026. The measure is targeted at high-volume senders rather than small retailers, but the definitional scope will matter considerably in practice.
Enforcement
Nepal
Nepal has introduced a VAT bill lottery designed to incentivise consumers to request VAT receipts and thereby increase compliance among sellers. Taiwan has had such a system in place for decades.
EU
Anti-Fraud Data Sharing
The EU Council agreed on 5 May 2026 to give EPPO and OLAF direct access to VAT data, including information held by the Eurofisc network, closing a longstanding gap that forced investigators to rely on slow bilateral exchanges with individual member states. The reform targets carousel fraud and other cross-border schemes estimated to cost EU treasuries between €12.5 billion and €32.8 billion each year, and remains subject to European Parliament approval expected in July 2026.
EPPO Annual Report
The EPPO’s 2025 Annual Report, published in March 2026, reveals 981 ongoing VAT and customs fraud cases representing an estimated €45 billion in damages, with revenue fraud accounting for around 67% of all damage under investigation. These figures reinforce the significance of the 5 May Council agreement granting EPPO and OLAF direct access to VAT data held by the Eurofisc network to accelerate cross-border fraud investigations.
Chile
Chile’s VAT on low-value imports up to $500 has been in force since October 2025. It collected approximately $97 million in its first two quarterly periods. AliExpress, Amazon, Temu, Shein and eBay were the top contributors, confirming that platform-based collection delivers results from day one.
Sweden
From 1 July 2026, Sweden’s Skatteverket will be authorised to remotely access and inspect companies’ accounting records directly in cloud platforms and third-party systems. The reform removes a longstanding prohibition on internet-based inspections and introduces new powers for remote evidence collection, including the ability to search and copy documents stored abroad.
Other
- Pakistan is facing IMF pressure to raise its standard GST rate from 18% to 19% ahead of its 2026-27 budget, a move estimated to generate an additional Rs250-300 billion in revenue. Pakistani authorities are resisting, citing inflationary pressure on consumers, and the FBR chairman has denied a formal proposal is on the table.
- Azerbaijan has updated its public list of companies registered.
Digital Economy
At their Paris meeting on 19 May 2026, G7 Finance Ministers described digital economy taxation as a subject of “constructive dialogue,” calling on the OECD Inclusive Framework to produce a report by the end of 2026 identifying a shared understanding of the challenges. This carefully worded formulation confirms that Pillar One remains unresolved, with the focus instead on implementing the Pillar Two Side-by-Side Package agreed in 2025. The broader context is stark. As Bloomberg reported in March 2026, the US has called for negotiators to start from zero on a decade-long project, with countries across the EU expressing growing frustration at what one commentator described as “US fatigue.” With roughly half of European OECD countries having announced, proposed or implemented their own digital services taxes, and the DST moratorium having expired at the end of 2024, the risk of US retaliatory tariffs makes this as much a trade issue as a tax one.
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: pvproductions
Want to know more? Please contact us at contact@deptax.com
