- Iman Deschâtres
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The recent various government budget announcements have triggered a fresh round of rules and regulatory measures, signalling that ecommerce companies, and particularly digital platforms, will face a more complex compliance landscape, measures that will potentially erode profit margins without proper affirmative management and effective processes.
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 critical comments are solely my own opinion and view, and you should not rely on these without checking with your own tax, legal and financial advisors.
Brazil
Brazil’s reform of its consumption tax system will enter into force in January 2026. Taxation at the place of consumption will be introduced, with digital platforms becoming liable for collecting the tax.
This OECD paper is a must-read for anyone operating in Brazil. It provides a clear overview of the core components of the country’s consumption tax reform, with a particular focus on the design and future operation of the new dual VAT.
Kazakhstan
A 16% VAT will apply to the sale of goods and services in Kazakhstan from January 2026. Digital platforms will be deemed liable for collecting the VAT on behalf of sellers, and no low-value goods threshold will apply.
Saudi Arabia
Saudi Arabia will introduce deemed-supplier rules from January 2026, applying to the sale of both goods and services. The definition of an electronic marketplace closely mirrors the EU’s approach. Platform liability will depend on the seller’s registration status, adding operational complexity for marketplaces and creating potential avenues for fraud.
EU regulations
The EU VAT Committee has issued comments on Italy’s question concerning the VAT treatment of IT services provided in exchange for users’ personal data. It replies that no VAT should be due when the platform offers the same service to all users and no settings are altered. However, where limiting data sharing results in reduced functionality, the situation must be assessed on a case-by-case basis, as a direct link between the data and the service may exist.
One key issue is identifying who is effectively paying for the service, for example, whether the IT service is funded by a third party such as an advertiser. This also raises broader questions about how such arrangements should be viewed in comparison with other media, such as free-to-access television.
Kenya
A Kenyan VAT case law recognises a broad concept of platform liability and emphasises that the economic and commercial reality of a transaction should prevail over its contractual form. Relevant factors considered include price control, service allocation, billing and invoicing, payment collection, and the management of the customer relationship. In this specific case, the court concluded that the platform was deemed liable for VAT on the full value of the transaction.
Low Value Goods
Last summer, the United States removed the USD 800 de minimis threshold for low-value goods entering the country. Many jurisdictions around the world are now considering similar measures and exploring the application of customs duties regardless of the value of the goods.
EU
The EU has reached a political agreement to remove the EUR 150 customs duty exemption as early as 2026, rather than mid-2028 as originally planned. This change means that customs duties will apply to every parcel entering the EU, regardless of its value. It is still unclear how these duties will be collected, whether marketplaces will be involved in the collection process, and what implications this may have for VAT collection on goods valued above EUR 150.
UK
The UK has launched a public consultation, open until March 2026, on the removal of the £135 de-minimis threshold. The change is expected to take effect by March 2029 at the latest, though it will likely be implemented earlier. Marketplaces would be made liable, and a fee per parcel or per item is also discussed.
Japan
Japan is planning, as part of its 2026 tax reform, to withdraw the consumption tax exemption for low-value goods imported for personal use.
Enforcement
France
France’s VAT gap for 2025 is estimated at nearly €10 billion, a portion of which is attributed to VAT fraud. The government plans to increase enforcement efforts, with a particular focus on e-commerce.
Mexico
Mexico has increased its tax revenues through stronger enforcement, with nearly a 5% rise attributed primarily to these efforts. However, some of the recent enforcement-related reforms place additional burdens on marketplaces.
Romania
The Romanian National Agency for Fiscal Administration has announced that it will audit 500 large companies selected through a tax risk analysis. This forms part of ANAF’s broader strategy to enhance fiscal compliance.
UAE
The UAE has published a new penalty regime designed to encourage faster error correction and voluntary disclosure.
Other
France is set to introduce a €2 charge on low-value goods parcels as part of its 2026 budget.
Taiwan has issued additional guidance on the taxation of influencers.
Russia is due to increase its VAT rate to 22% from January 2026.
Bhutan A new GST regime will take effect in January 2026, introducing obligations for foreign suppliers and establishing liability rules for marketplaces.
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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