- Iman Deschâtres
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With summer holidays behind us, September brought a renewed wave of tax updates and policy shifts to tackle…
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.
Chile
Chile is set to change its legislation regarding VAT on low-value goods in October 2025. In preparation, the tax authorities have published an insightful article aimed at businesses, explaining the upcoming changes and the rationale behind them. The article also shares data on the 10 largest platforms selling into Chile. It’s well worth reading — even for those outside the tax profession.
UK
The UK Parliament’s February 2025 publication on tax evasion in the retail sector highlighted the mandate that marketplaces strengthen checks on the establishment of sellers, as this directly impacts VAT liabilities. In response, HMRC has issued guidance defining what constitutes reasonable and appropriate checks. The guidance notes that the level of checks required may depend on the size of the platform and provides a non-exhaustive list of possible measures — including reviewing financial information, geolocation data, and the residency of directors. For a deeper dive into this topic, you can refer to a detailed blog we published last year.
Taiwan
Taiwan has issued clarifications on VAT collection for revenue generated by content creators, aligning these rules with existing regulations on cross-border electronic services. Platforms will now have an obligatory role in collecting business tax (Taiwan VAT). Interestingly, VAT appears to be due on advertising spend even when payments are made to foreign companies, as long as the content is “targeted” at Taiwanese viewers.
I may be misinterpreting some aspects, but given that content creation is rarely aimed at a single country’s audience, I wonder how the portion attributable to Taiwanese viewers will be able to be measured. If you have additional insights into these new rules, feel free to reach out. It is also worth noting that, “under the principle of simplified taxation, overseas influencers are exempt from tax registration and business tax filing.”
Extension of Scope of legislation
Mexico
Mexico is set to extend platform obligations for sellers of physical goods starting January 2026. The rules will differ depending on whether the seller is domestic or foreign, will apply to both B2B and B2C transactions, and will introduce mandatory e-invoicing alongside higher withholding tax rates on certain seller income. If your platform sells in Mexico, it is essential to review these new requirements and ensure your processes are aligned.
US Washington State
As states look for new revenue sources, sales tax is increasingly being extended to services, including live presentations. While this may seem routine outside the U.S., it represents a relatively new approach in the US, as services have only recently come within the scope of U.S. sales tax.
Colombia
Draft tax rules in Colombia propose eliminating the ‘de minimis’ exemption for low-value shipments and removing the exemption for cloud computing, hosting, and software licenses for digital content. These changes would directly impact foreign suppliers providing goods or services in Colombia.
Enforcement
Thailand
Thailand has ended its tolerance for late VAT payments. This is a significant change, as late payments can easily occur when businesses must make VAT payments globally in multiple currencies on a monthly or quarterly basis.
Lebanon
As part of its 2026 budget bill, the Lebanese government has announced a focus on fighting tax fraud as a key source of revenue generation.
Canada
The Canada Revenue Agency has updated its Voluntary Disclosures Program, offering 75% interest relief and full penalty relief for unprompted applications, and 25% interest relief with up to full penalty relief for prompted applications following CRA contact.
UK
Temu’s corporate tax position is under scrutiny in the UK, reviving a recurring debate about where corporate tax should be paid — based on the location of sales or the place of establishment.
Israël
Authorities are reviewing a large tax fraud case related to online commerce and importers.
Other News
- South Africa: Platform may become liable for local seller of digital services
- Sri Lanka : The introduction of VAT on foreign suppliers of digital services has been postponed from October 2025 to April 2026, to give international providers additional time to implement the necessary systems. The DepTax system, however, can be updated in just five minutes.
- Ukraine has proposed implementing regulations similar to Europe’s DAC7, requiring platforms to share more information and enhancing the country’s information exchange processes.
- The EU has published the VIDA implementation strategy. Explanatory notes are expected in late 2026 and early 2027, and at least six implementation regulations will also be released.
- The OECD has published a comprehensive report on Governing with Artificial Intelligence, reviewing use cases of AI in tax administration. I’ll share more detailed comments in October after I’ve had a chance to read it fully.
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: Jakub Żerdzicki
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