BDO Indirect Tax News 4 | 2026

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The latest edition of Indirect Tax News, produced by our international network, provides timely insights into the most significant indirect tax developments across jurisdictions worldwide. Key themes include VAT reforms, developments in e-invoicing, evolving tax authority interpretations, and the increasing importance of economic substance in determining tax outcomes.

Spain moves forward with B2B e-invoicing

The main topic of the final Indirect Tax News of 2026 is Spain’s long-awaited final regulation on mandatory business-to-business (B2B) e-invoicing. The regulation introduces a phased transition period: companies with annual turnover exceeding EUR 8 million will be required to comply from 6 October 2027, while other taxpayers will be required to comply from 6 October 2028.

VAT and digital reporting undergoing change

The review also highlights the accelerating pace and growing scope of changes in VAT, sales tax and digital reporting. These include shorter tax assessment time limits in Argentina, the reintroduction of real-time electronic sales reporting in the Czech Republic, as well as several other VAT-related changes, revised tax rates, exemptions and refund rules in Egypt. In addition, Italy is extending the deadlines for exercising the right to deduct VAT, the Netherlands is preparing for the implementation of the broader ViDA framework, and Switzerland is planning measures to simplify taxation.

In Indonesia, a new mechanism extends VAT collection to certain cross-border digital transactions outside the existing VAT system, with banks and payment service providers participating in the verification of transactions as well as the collection and remittance of VAT.

Meanwhile, U.S. states are expanding the scope of sales and use taxes to SaaS, streaming services, digital products and data-related services. This may result in new registration, tax collection, sourcing, self-assessment and documentation obligations ahead of 2027.

Customs and trade rules continue to evolve

Trade-related issues also remain firmly in focus. The publication examines a decision by the U.S. Court of International Trade to certify a class action brought by importers seeking refunds of unlawful IEEPA tariffs. It also discusses practical steps importers should take as the case progresses. In addition, the publication looks at new U.S. tariffs affecting Canadian exporters and how the United Kingdom’s accession to the CPTPP creates new customs and trade planning opportunities for companies engaged in trade between Canada and the United Kingdom.

In the EU, a ruling by the General Court of the European Union demonstrates that parts imported in separate consignments may be classified as a finished product if objective evidence shows that they form a single whole. This could have significant implications for component importers and companies engaged in assembly operations.

Changes require businesses to plan ahead

Together, these changes highlight the importance for businesses of closely monitoring the effective and implementation dates of new rules, as well as developments in case law. It is also important for businesses to reassess their compliance processes and supply chains, safeguard any potential rights to tax and customs duty refunds, and identify new opportunities arising from evolving indirect tax and trade rules.

Explore these topical issues in the articles below!

EMEA

Aasia Pacific

The Americas