Kworia News
Articles tagged vat
Brazil has officially set the CBS (Contribuição sobre Bens e Serviços) rate at 11.3%, effective January 2027, as a critical compliance benchmark for businesses and foreign digital service providers. The announcement coincides with December 1, 2026 e-invoicing deadline, marking major milestones in Brazil's 2026–32 VAT reform.
Uganda has raised its VAT registration threshold from UGX 150 million to UGX 300 million, effective July 1, 2026, reducing mandatory VAT compliance obligations for SMEs and providing greater flexibility in managing their tax registration status.
India's CBIC has extended GST e-invoicing to include transactions involving unregistered suppliers under RCM and imports of services, effective January 1, 2027. The amendment introduces new compliance obligations for businesses with approximately two months to adapt invoicing systems.
EU member states are implementing VAT in the Digital Age (ViDA) with sharply divergent strategies, creating a fragmented compliance landscape. Multinationals face five or more distinct national compliance tracks simultaneously, with Poland's combination of extended grace periods and new joint liability rules presenting a notable compliance trap.
Germany is building a data infrastructure for automated VAT auditing through its phased e-invoicing mandate. By January 2027, businesses with revenue exceeding €800,000 must issue structured invoices in ZUGFeRD or XRechnung format, enabling near-real-time tax verification and enhancing VAT compliance enforcement efficiency.
Ireland's Finance (No. 2) Bill 2026 codifies e-invoicing and real-time VAT reporting obligations, with phase one applying to large businesses from November 2028 and phase two extending to intra-EU transactions from November 2029.
The Uganda Revenue Authority clarifies that VAT on insurance premiums must be accounted for at invoice issuance, not payment receipt, applying the "earliest of three" rule. This affects cash flow management for insurers who must remit VAT before collecting premium income.
Italy's POS-to-cash register matching program has identified €13.5 billion in previously unreported VAT taxable sales. This digital enforcement tool reconciles point-of-sale transaction data with fiscal cash register records, operating alongside Italy's mandatory SdI e-invoicing system.
India's GSTN has extended its e-invoicing framework to include recipient-generated self-invoices under RCM, effective October 16, 2026. The mandate applies to registered taxpayers with an aggregate annual turnover of ₹5 crore and above, covering RCMDOM and RCMIMP transactions. Sandbox testing environments are now live across authorized IRPs.
France's mandatory e-invoicing framework (live September 2026) conflicts with VAT-on-margin regimes for travel agencies, second-hand goods dealers, and land sellers. AFNOR Use Case #33 resolves this by encoding margin VAT with VATEX exemption codes and zero VAT display for B2B transactions, while requiring separate e-reporting for B2C.
A landmark UK tribunal judgment establishes that contractual labelling alone cannot create a recoverable VAT supply of labour services. The ITS Plant-Tech v HMRC case reinforces that economic reality determines VAT recovery eligibility for umbrella payroll arrangements, with significant consequences for recruitment agencies and contractors.
Uruguay has extended its reduced 13% VAT rate for tourism services until April 2027, down from the standard 22% rate. This extension, confirmed October 8, 2026, provides tourism businesses with planning certainty while maintaining the possibility of reverting to standard rates after the deadline.
