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Sales and Use Tax Updates

1. Ohio

Ohio Lake County Sales Tax Increase (Effective July 1, 2025)

Lake County, Ohio, is increasing its combined sales and use tax rate from 7.0% to 7.25%. This affects all retail sales, including tangible goods and taxable services. Both brick-and-mortar stores and remote sellers shipping to Lake County must update their systems to charge the higher rate. The change will influence e-commerce platforms, invoice templates, and marketplace facilitators. The Ohio Department of Taxation has issued notices to registered businesses to prepare for the shift. Local consumers may see modest price increases. This is part of Lake County’s broader fiscal plan to increase local funding without altering property tax rates.

2. Mississippi

5% Sales Tax Rate on Eligible Grocery Items Effective July 1, 2025

Beginning July 1, 2025, Mississippi will implement a reduced 5% sales tax rate on certain food and drink items for human consumption—if they would qualify as exempt under USDA food stamp guidelines but are not purchased with food stamps. This change amends the tax treatment of everyday grocery purchases to align more closely with federal food assistance standards and provide broader tax relief on essential goods.

This provision is detailed in amendments to Section 27-65-17 and complements existing exemptions under Section 27-65-111(O) of the Mississippi Code.

3. Tennessee

Tennessee Tax-Free Weekend (July 25–27, 2025)

Tennessee residents can shop tax-free for clothing and school supplies (≤ $100/item) and computers (≤ $1,500) during the state’s 3-day event. The holiday applies to both state and local sales taxes, providing meaningful savings especially on high-ticket tech purchases for students.

Occupancy Tax Expansion to First 30 Days (Effective July 1, 2025)

Tennessee will begin requiring tax collection on the first 30 days of any rental period, even if the stay exceeds one month. Previously, tax obligations applied only to rentals under 30 days. The new rule affects short-term rental platforms like Airbnb, VRBO, and traditional extended-stay hotels. It also applies to bookings made before July 1 if occupancy begins after that date. Hosts and platforms must adjust their systems and invoices to reflect this update. The Department of Revenue expects increased enforcement and audit activity to follow. This rule aims to close a tax loophole on long-stay accommodations.

4. Alabama

Back-to-School Sales Tax Holiday (July 18–20, 2025)
Alabama’s annual tax-free weekend helps families prepare for the school year by exempting clothing (≤ $100/item), school supplies (≤ $50/item), books (≤ $30/item), and computers (≤ $750) from sales tax. This applies statewide, but local governments can choose whether to participate.

5. Florida

Extended Back-to-School Tax Holiday (July 28 – August 10, 2025)
Florida offers one of the most generous tax holidays, covering clothing and footwear (≤ $100/item), school supplies (≤ $50/item), and computers/accessories for personal use (≤ $1,500). The two-week window allows families more time to shop and save. This initiative is part of a broader tax relief package passed by the legislature to ease back-to-school costs.

Hillsborough County Sales Surtax Reinstated by Court Ruling (Effective June 30, 2025)

The Florida Supreme Court upheld the reinstatement of a 1% transportation surtax in Hillsborough County, which includes Tampa. The surtax was originally struck down in 2020 but is now set to take effect again on June 30, 2025. It applies to most sales subject to state tax except fuel and large-ticket items. Businesses operating in Hillsborough County must update systems to collect the additional surtax, particularly restaurants, retailers, and contractors. This decision aligns with long-term regional infrastructure funding goals.

6. Virginia

Fairfax County Lodging Tax Increase (Effective July 1, 2025)

Fairfax County will raise its total Transient Occupancy Tax (TOT) rate from 7% to 9%, impacting hotels, motels, and all short-term rentals. This change supports transportation projects in the area and applies to stays under 90 days. Lodging providers—including Airbnb hosts and corporate housing firms—must update their billing platforms and rate schedules. The increase applies to the total room charge and must be clearly stated to guests at booking. The county also requires detailed monthly tax reporting from providers. This policy aligns with Northern Virginia’s infrastructure enhancement funding model.

7. Utah

Economic Nexus Threshold Simplification (Effective July 1, 2025)

Utah is simplifying its economic nexus policy by eliminating the transaction-count qualifier and adopting a single threshold of $100,000 in gross sales. This means any out-of-state business exceeding that amount in Utah-related sales—regardless of transaction count or product taxability—must register to collect and remit Utah sales tax. The rule applies to remote sellers, SaaS vendors, digital product providers, and marketplace facilitators. Exempt, wholesale, and service-only sales all count toward the threshold. Utah is also updating its education materials to reflect the change. This aligns with nationwide trends to simplify economic nexus criteria and ensure compliance.

8. Washington

New Local Sales Taxes in Stevenson & San Juan County (Effective July 1, 2025)

The Washington Department of Revenue has announced two new local sales and use tax changes. Stevenson will implement a Transportation Benefit District sales tax, and San Juan County will enact a 0.1% emergency communications sales tax. Both taxes apply to retail sales and use tax liabilities and are part of ongoing regional infrastructure and public safety funding efforts. Businesses selling or shipping to these areas must adjust rate sourcing and ensure accurate tax collection. Updates are reflected in Washington’s GIS-based rate lookup tools and DOR bulletins.

9. Alaska

City of Elim Joins Remote Seller Sales Tax Commission (Effective June 1, 2025)

The City of Elim, Alaska, has joined the Alaska Remote Seller Sales Tax Commission (ARSSTC), enabling remote collection of its 3% local sales tax on all remote sales shipped into Elim. Sellers using platforms such as Shopify or Amazon must comply through ARSSTC’s standardized system. Alaska has no statewide sales tax, so this expansion of municipal collection authority represents a growing patchwork of remote seller obligations. Businesses must stay current with member jurisdictions and their tax rules to ensure compliance.

VAT Updates

1. European Union

VAT in the Digital Age (ViDA) proposals formally adopted

The EU formally adopted the VAT in the Digital Age (ViDA) package on 11 March 2025, with legislative texts published in the Official Journal on 25 March. The reform will be implemented progressively between 2025 and 2035, modernizing VAT compliance across the EU. Starting 1 July 2030 mandatory EU-standard e-invoicing and digital reporting for cross-border transactions. 

EU Council Agrees on Directive to Simplify VAT Collection on Imports – May 2025

On 13 May 2025, the Council of the European Union agreed on a directive aimed at simplifying VAT collection for imported goods, particularly low-value consignments (≤ €150). The proposal enhances the Import One-Stop Shop (IOSS) by incentivizing its use, while tightening rules for non-compliant sellers. Businesses that opt out of IOSS will face stricter VAT obligations, including multiple country-specific registrations. The reform targets fraud reduction, administrative simplification, and improved VAT compliance in the growing e-commerce sector. This agreement marks a key step in the EU’s broader VAT digital modernization.

2. Hungary

VAT Return (Form 2565A) Updated to Version 2.0 – Effective March 1, 2025

A new page has been introduced for indirect customs representatives who claim VAT deductions on behalf of importers, based on Section 129(5) of the VAT Act. This page must list each import where the deduction right is exercised. 

Modifications to Lines 70 and 71: The main form has been updated, particularly lines 70 and 71, to accommodate the new reporting requirements associated with indirect customs representation.

3. Ireland

Ireland Extends Reduced 9% VAT Rate on Gas and Electricity Until October 31, 2025
The Irish Government introduced a Financial Resolution on April 2, 2025, to extend the reduced 9% VAT rate on gas and electricity for six additional months, from May 1 to October 31, 2025. Originally introduced in May 2022—lowering the rate from 13.5% to 9%—this temporary measure was designed to ease energy cost pressures on households.  The latest move ensures continued support for households through the 2024/25 winter season.

4. South Africa

Suspension of planned increase of the standard VAT rate from 15% to 15.5% Effective 01 May 2025

On 27 April 2025, the South African Revenue Service (SARS) formally welcomed the Western Cape High Court’s decision to suspend the proposed increase in the VAT rate from 15% to 15.5%, which was originally scheduled to take effect on 1 May 2025.

As a result of the court’s ruling, the VAT rate will remain at 15%, and there is no legal basis to implement the previously planned increase to 15.5%.

SARS has instructed vendors to continue applying the current 15% VAT rate on all taxable goods and services. 

5. Slovakia

Announcement of updated VAT Return Form Effective from July 01 2025
On March 21, 2025, the Slovak Ministry of Finance introduced an updated VAT return form and template to reflect upcoming changes to VAT legislation effective from July 1, 2025. One of the key changes includes the introduction of a self-assessment mechanism for import VAT.

6. Slovenia

Mandatory New VAT Ledger Submissions for All VAT-Registered Entities Starting July 2025
Starting 1 July 2025, all VAT-registered persons in Slovenia—including non-EU entities—must submit detailed VAT ledgers alongside their VAT returns. These monthly electronic records, required in XML, JSON, or CSV format, must include data on all incoming and outgoing invoices, broken down by various transaction types and VAT amounts. This new compliance obligation is separate from filing the VAT return and includes strict content and format requirements. Taxpayers should prepare to align with the published technical specifications and ensure timely submission to avoid penalties.

7. Australia

ATO Publishes Supplementary Annual GST Return 2025

On 7 May 2025, the Australian Taxation Office (ATO) released the Supplementary Annual GST Return 2025 (NAT 75615), targeting businesses that have received a GST assurance rating through a Top 100 or Top 1,000 assurance review. This return is mandatory for entities notified by the ATO and is designed to enhance transparency and compliance in GST reporting.

8. Estonia

Reminder for our readers that from 1July 2025, the standard rate of VAT in Estonia is 24% instead of the current 22%

E-Invoicing and Live Reporting Updates

1. Turkey

Turkey Updates E-Invoice Package and UBL-TR Code Lists Effective June 2025

The Turkish Revenue Administration published UBL-TR Code Lists V1.37 and a revised e-invoicing schema.

These changes implement the Technology Support e-Archive Invoice Guide, including a new invoice type code ("TEKNOLOJIDESTEK"), updated item identification rules, and additional validation rules for sales of supported electronic devices.

Originally due by May 2, 2025, the compliance deadline has been extended to June 13, 2025, allowing more time for system updates to meet the new invoicing requirements.

2. France

France Confirms Mandatory E-Invoicing Implementation Timeline Beginning September 2026

The French National Assembly has approved an amendment to the Bill for the Simplification of Economic Life (Bill No. 1191), officially reaffirming the phased implementation of mandatory B2B e-invoicing in France. Under the confirmed timeline:

  • September 2026: Mandatory e-invoicing for large companies and mid-cap companies

  • September 2027: Rollout extends to small and medium-sized enterprises (SMEs) and micro-companies

The amendment provides legal clarity and regulatory certainty, allowing businesses and service providers to move forward with their e-invoicing preparations confidently.

3. Poland

Poland Releases Draft FA(3) E-Invoicing Schema on May 8 2025 

The Polish Ministry of Finance has released the draft FA(3) e-invoicing schema, which will replace the current FA(2) format as of 1 February 2026 under the Krajowy System e-Faktur (KSeF).

FA(3) introduces several key enhancements, including support for structured attachments, expanded VAT rate classifications, new recipient role types, and improved correction invoice handling. 

These updates aim to boost compliance, data accuracy, and operational efficiency within the national e-invoicing system. The final FA(3) version is expected in June 2025, with mandatory adoption beginning February 2026 for large taxpayers.

4. Australia and New Zealand PINT

AU & NZ – PINT Self-Billing and Billing v1.1.1 Released

PINT A-NZ Version 1.1.1 (May 2025) includes:

  • The removal of the PINTtaxEx code list, aligning with broader Peppol standards.
  • Corrections to validation rules IBR-087 and IBR-CO-15, improving logic and clarity in invoice validation.

These changes collectively redefine and clarify both the Billing and Self-Billing processes, enhancing compliance, data quality, and interoperability.

These updates are part of the broader transition to PINT A-NZ as the mandatory specification for e-invoicing in Australia and New Zealand, replacing the older A-NZ Peppol BIS 3.0 standard from May 15, 2025

5. Germany and France

Germany and France jointly announce Hybrid E-Invoicing Standards to Enhance EU Compliance

Germany and France have announced updates to their hybrid e-invoicing standards to better align with upcoming EU-wide e-invoicing and e-reporting mandates under the ViDA (VAT in the Digital Age) initiative.

The Forum Elektronische Rechnung Deutschland (FeRD) and the Forum National de la Facture Électronique (FNFE-MPE) jointly released updated versions of their hybrid e-invoicing formats: ZUGFeRD 2.3.3 and Factur-X 1.0.07.3.

These updates, effective May 15, 2025, align with the European standard EN 16931 and introduce enhancements to support the French B2B e-invoicing mandate; including updated code lists, integration of VAT exemption codes, and improved validation rules. The formats maintain backward compatibility and continue to facilitate cross-border electronic invoicing between Germany and France.

6. Saudi Arabia

Saudi Arabia Enforces ISO 8601 Date Format for E-Invoices Effective June 2025

Effective June 22, 2025, the Zakat, Tax and Customs Authority (ZATCA) will enforce validation rule BR-KSA-F-01, mandating that all date fields in e-invoices adhere to the ISO 8601:2004 format (YYYY-MM-DD). Invoices not complying with this format will be rejected to ensure accurate tax period mapping.

 Businesses are recommended to update their invoicing systems accordingly to ensure compliance and avoid disruptions in tax reporting or invoice processing.

7. Brazil

Brazil Implements Standardized 11-Year Retention Period for E-Fiscal Documents

The National Council for Fiscal Policy (CONFAZ) has issued Ajuste SINIEF nº 2/25, requiring businesses to retain all electronic tax documents—including NF-e, CT-e, MDF-e, and others—for a minimum of 132 months (11 years).

This applies to various invoice types, including sales, transport, utility, consumer, and communication documents.

Taxpayers are  responsible for ensuring secure storage and accessibility, regardless of SEFAZ system backups.

8. Singapore

Singapore Launches Phased Mandatory E-Invoicing via InvoiceNow Starting May 2025
Starting May 1, 2025, Singapore will begin a phased rollout of mandatory e-invoicing through the InvoiceNow network to enhance GST compliance and digital tax reporting. While initially voluntary for most GST-registered businesses, InvoiceNow became mandatory for newly incorporated voluntary registrants from November 1, 2025, and for all new voluntary GST registrants from April 1, 2026. 

The system enables real-time, structured invoice transmission using the Peppol standard, reducing manual errors and streamlining tax reporting. The initiative supports Singapore’s broader push toward a fully digital tax environment.

Cross Border Tariff

May Detailed Update

Update 1

US Inbound: De Minimis exemption ends for Chinese goods.

Effective Date: - 2nd May 2025.

Click here for official release

Update 2

New executive order published by the US government which applies only to tariffs imposed by the following actions:

1. Proclamation 10908 – Tariffs on automobiles and automobile parts (national security).

2. Executive Orders 14193, 14197, 14226, 14231 – Tariffs for Northern Border drug-related threats.

3. Executive Orders 14194, 14198, 14227, 14232 – Tariffs for Southern Border threats.

4. Proclamation 9704 + Amendments – Tariffs on aluminium.

5. Proclamation 9705 + Amendments – Tariffs on steel.

This Executive Order is about fairness and clarity in tariffs. It prevents excessive penalties by ensuring that only one applicable tariff applies to the same product under the authorities listed, while maintaining the integrity of all trade enforcement tools.

Effective Date: - 3rd May 2025.

Click here for official release

Update 3

For 90 days, the US and China have agreed to ease trade tensions. Below are changes which happen for US customs tariff.

1. The US will reduce its 34% country specific tariffs on Chinese products (including those from Hong Kong and Macau) by 24% points.

2. It will also drop the additional 125% retaliation tariffs.

3. The 10% reciprocal tariff will remain in place.

Effective Date: - 14th May 2025.

Click here for official release

Update 4

China Inbound

1.  Announcement of the Tariff Commission of the State Council on the Imposition of Additional Tariffs on Imported Goods Originating in the United States" (Tax Commission Announcement No. 4 of 2025) from 34% to 10% and suspend the implementation of the 24% additional tariff rate on the United States within 90 days. 

2.  Announcement of the Tariff Commission of the State Council on Adjusting Additional Tariff Measures on Imported Goods Originating in the United States" (Tax Commission Announcement No. 5 of 2025) and the "Announcement of the Tariff Commission of the State Council on Adjusting Additional Tariff Measures on Imported Goods Originating in the United States" (Tax Commission Announcement No. 6 of 2025).

Effective Date: - 14th May 2025.

Click here for official release

April Trade War Changes

1. The U.S imposed a 10% tariff on all imports except Canada & Mexico.

2. Exemptions Announced for Certain Products (Including Semiconductors) from retaliatory tariffs.

1. Country-Specific Reciprocal Tariffs introduced ranging from 11% to 50% applied to selected countries (e.g., China 34%, India 26%, Vietnam 46%). Paused for 90 days on the same day.

2. Additional 84% Tariff on China, Hong Kong, and Macau originating goods.

3. Canada Imposes 25% Surtax on U.S Motor Vehicles.

1. U.S Tariff on China, Hong Kong and Macau Raised to 125% from 84%.

2. China Imposes 34% Tariff on U.S. goods and increases to 84% later the same day.

China Raises Tariff on U.S. Goods to 125%.

March Trade War Changes

U.S imposes 25% tariff on all Canadian goods, 10% on Canadian energy products, 25% tariff on all Mexican goods and 10% punitive duty on all Chinese-origin goods.

Canada publishes a list of U.S.-origin goods subject to 25% additional tariffs.

U.S scales back the 25% punitive tariffs on Canadian and Mexican imports. Tariffs now apply only to non-USMCA-qualified imports.

Additional tariff of 25% tariff on all steel and aluminium imports signed on Feb 10.

Canada imposes 25% surtax on U.S.-origin steel and aluminium products.

China retaliates by 100% tariff on rapeseed oil, oil cake, peas and 25% tariff on aquatic products and pork from Canada.

U.S applies 10% additional duty on energy imports from Canada.

U.S imposes 25% additional duty on specific automobile-related HS codes.

February Trade War Changes

U.S imposes 10% punitive tariff on all China-made products, regardless of shipping origin and reduces De Minimis threshold from $800 to $0 for shipments originating and shipped from China.

U.S imposes 10% punitive tariff on all Hong Kong-made products, regardless of shipping origin.

Canada announces 25% retaliatory tariff on U.S.-origin goods. These tariff changes were revoked later the same day.

U.S revokes the De Minimis change, restoring the $800 exemption for China-origin shipments.

China imposes 15% tariff on U.S originating coal and liquefied natural gas. 10% tariff on crude oil, agricultural machinery, large-displacement cars, and pickup trucks.

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