Stay ahead on indirect tax insights

Subscribe for monthly expert insights and updates to stay ahead of indirect tax compliance changes.

Person working on a computer and holding virtual renditions of invoices in one hand

Sales and use tax updates

1. New York

Onondaga and Ulster Counties: Cents-Per-Gallon Local Sales and Use Tax Method Repealed (Effective September 1, 2026)

Effective September 1, 2026, Onondaga and Ulster Counties have repealed their election to calculate local sales and use tax using the cents-per-gallon method. In these localities, local tax must be calculated using the percentage rate method.

Additionally, three counties have opted to adopt the cents-per-gallon calculation approach for these specific fuel types.

Orange County: Effective September 1, 2026, through February 28, 2027.

Oswego County (outside the city of Oswego): Effective September 1, 2026, through November 30, 2026.

Putnam County: Effective September 1, 2026, through August 31, 2028.

Click here for official release

2. New Jersey

North Bergen Township: Transient Accommodations Tax Effective September 1, 2026

Effective September 1, 2026, North Bergen Township imposes a 3% transient accommodations tax on short-term rentals.

Click here for official release

3. Illinois

Village of Skokie: Amusement Tax Rate Increase and Base Expansion Effective September 1, 2026

Effective September 1, 2026, the Village of Skokie, pursuant to Ordinance 26-6-C-479 is increasing the amusement tax rate from 2% to 5%.

The amendment expands the tax base to include electronically delivered amusements provided on a rental or subscription basis, specifically video streaming, audio streaming, and remotely accessed online games. Paid television programming transmitted by wire, cable, fiber optics, laser, microwave, radio, satellite, or similar means is also subject to the tax.

Transactions where the patron pays for rights of permanent use are excluded.

Click here for official release

Illinois Implements Remote Retailer Amnesty Program (August 1 – October 31, 2026)

Illinois has adopted a rule implementing a Remote Retailer Amnesty Program that runs from August 1 through October 31, 2026. Under the program, out-of-state sellers with Illinois economic nexus may resolve unpaid state and local Retailers' Occupation Tax on sales made from January 1, 2021 through June 30, 2026. Participants apply through MyTax Illinois and pay simplified flat rates of 9% on general merchandise and 1.75% on qualifying food, drugs and medical appliances, with all penalties and interest waived on eligible liabilities. The underlying tax is not forgiven, and registration with the Illinois Department of Revenue is required before filing.

Click here for official release

4. Arizona

City of Kingman: Single Transaction Threshold into Retail Sales and Use Tax Effective September 1, 2026

Effective September 1, 2026, the City of Kingman adopted Local Option # V of the Model City Tax Code pursuant to Ordinance No. 2003 (passed June 16, 2026), introducing a two-tier rate structure into its retail sales and use tax classifications.

Transactions involving a single item exceeding $10,000 are subject to a reduced rate of 2.5%. Transactions below the $10,000 threshold remain subject to the regular retail and use tax rate of 3%. The official copy of an ordinance can be found here.

Click here for official release

5. California

California to Tax Prewritten Software and SaaS from January 1, 2027

California enacted SB 122 (Chapter 23, approved June 29, 2026), extending state and local sales and use tax to prewritten computer software delivered electronically or accessed remotely, including SaaS, for transactions on or after January 1, 2027. The Act amends the definition of tangible personal property to include a “digital product” (new R&TC §6016.1). Custom software remains excluded. Where a single retailer’s remotely accessed digital-product sales to one purchaser exceed USD 5 million in a calendar year, the purchaser must self-assess and remit use tax directly to the CDTFA.

Click here for official release

6. Kentucky

Kentucky Eliminates 200-Transaction Nexus Threshold and Taxes Data Brokering from August 1, 2026

Kentucky enacted HB 757 (Acts Chapter 161). Effective August 1, 2026, it removes the 200-transaction economic nexus threshold for remote retailers and marketplace providers, leaving a receipts-only test of USD 100,000 in gross receipts, and extends the 6% sales and use tax to data brokering services (with an exemption for services provided by government entities).

Click here for official release

7. Pennsylvania

Pennsylvania moves Philadelphia and Allegheny County Local Sales Tax to Destination Sourcing; enforcement from October 1, 2026

Under Act 21 of 2026 (enacted July 12, 2026, with a retroactive effective date for tax years after December 31, 2025), Pennsylvania requires vendors to collect and remit Philadelphia’s 2% and Allegheny County’s 1% local sales tax based on where the taxable product or service is delivered (point of destination) rather than the vendor’s location. This creates a local collection obligation for vendors located outside those counties. State sales tax and state and local use tax rules are unchanged. The Department of Revenue will not begin enforcing the new rules until October 1, 2026.

Click here for official release

VAT updates

1. Romania

Romanian accounting association calls for One-Year Extension of reduced 9% VAT Rate on New Housing

Romania's Chamber of Deputies adopted (session of 29 July 2026) a fiscal-budgetary bill maintaining the reduced 9% VAT rate for qualifying residential property purchases through 30 September 2026 inclusive, pending promulgation and publication in the Official Gazette (entry-into-force date not yet fixed)

Under the official text, the relief applies to a single dwelling of up to 120 sq. m and RON 600,000 (excluding VAT), provided the buyer has not acquired another home under the reduced regime since 1 January 2023 and had signed an advance-payment agreement by 1 August 2025; for agreements concluded between 3 and 31 July 2025, a 20% advance had to be fully paid by 31 July 2025.

The law also provides a refund mechanism for the difference between the standard VAT rate and 9% for eligible transactions completed between 1 August 2026 and the law’s entry into force.

Click here for official release

2. Thailand

Thailand Extends Reduced 7% VAT Rate until September 30, 2027

Thailand’s cabinet has approved in principle a draft royal decree to extend the reduction of VAT to 7% (including local tax) for a further one-year period, from 1 October 2026 to 30 September 2027. According to the Thai Revenue Department, the extension is intended to address continuing economic uncertainty and mitigate upward pressure on transport costs and consumer prices, while supporting domestic consumption and overall economic growth.

Click here for official release

3. Switzerland

Switzerland parliament approves VAT increase to help finance 13th AHV Pensionng Portaria n.º 221/2017 Switzerland’s parliament has backed a VAT-only route to help finance the country's new 13th old-age pension (AHV), rejecting an alternative that would have raised wage (payroll) contributions. According to the Federal Assembly, standard VAT rate expected to rise from 8.1% to 8.5% and the special accommodation rate from 3.8% to 4.0%, while the reduced rate for essential goods such as food and medicines would remain unchanged at 2.6%.

Because the measure requires an amendment to the Federal Constitution, it is not yet final and must still be approved by Swiss voters and the cantons in a mandatory referendum before it can take effect.

Federal decision can be found here.

Click here for official release

4. Isle of Man

VAT rate reduction on domestic electricity supplies to 0% from October 1, 2026

The Isle of Man treasury has announced that the VAT rate on domestic electricity supplies will be reduced from 5% to 0%, effective October 1, 2026, following the UK Government’s decision to remove VAT from domestic electricity supplies.

Under the change, the 0% VAT rate will apply to eligible domestic electricity supplies from October 1, 2026. The change will be implemented in accordance with the Customs and Excise Agreement, which requires the Isle of Man to maintain the same VAT rates as the United Kingdom.

The VAT relief will also extend to qualifying small businesses that receive domestic energy VAT relief and are not VAT registered, as well as eligible charities and residential care homes. Qualifying small businesses are those with electricity consumption below an average of 1,000 kWh per month. Manx Utilities will apply the revised VAT rate to eligible electricity supplies from October 1, 2026, with the reduction reflected directly in customer bills.

Click here for official release

5. Hungary

Hungary introduces 0% VAT rate for prescription medicines from September 1, 2026

The Hungarian Government has introduced a 0% Value Added Tax (VAT) rate for exclusively prescription-only medicines, effective September 1, 2026. The amendment was published in the Hungarian Official Gazette and amends the Hungarian VAT Act to introduce a zero-rate VAT treatment for qualifying prescription medicines.

Under the amendment, exclusively prescription-only human medicines and certain human medicinal magistral preparations will be subject to the 0% VAT rate. These products have been included in Annex 3/B of the Hungarian VAT Act, which specifies goods and services eligible for the zero VAT rate.

The change reduces the VAT burden on qualifying prescription medicines from the rate previously applicable to these products to 0%, thereby reducing the final cost of medicines for patients. The new VAT treatment will apply to qualifying supplies made from September 1, 2026.

Click here for official release

6. Ukraine

Ukraine Proposes to Remove VAT Exemption for Low-Value Imports from Foreign Marketplaces

The Government of Ukraine proposed changes on July 29, 2026, to the rules governing the taxation of goods imported through foreign online marketplaces. The Government approved a draft law and submitted it to the Verkhovna Rada for consideration. The proposal aims to update Ukraine’s import taxation rules and establish more equal tax conditions for Ukrainian and foreign sellers.

Under the proposed legislation, the existing VAT exemption for imported goods valued at up to EUR 150 received by individuals through international postal and express shipments would be abolished. Consequently, commercial goods purchased through foreign marketplaces would become subject to VAT, including goods currently falling below the EUR 150 threshold.

The proposal would retain the exemption for non-commercial gifts valued up to EUR 45 that are sent free of charge between individuals. The Government stated that the proposed changes are intended to support fair competition, protect Ukrainian businesses, and increase budget revenues.

The proposed VAT changes are not yet effective. The draft law must first be considered and adopted by the Verkhovna Rada before becoming law. Therefore, no effective date has been established yet for the proposed removal of the EUR 150 VAT exemption

Click here for official release

E-invoicing and live reporting updates

1. India

India defers planned e-way bill enhancements until further notice

GSTN has deferred the implementation of the proposed e-way Bill enhancements, originally scheduled to take effect on August 1, 2026, until further notice. The deferred changes include mandatory capture of the Ship-to GSTIN in applicable transactions and the voluntary e-Way Bill closure facility. No production-system changes are required at this stage, and the related advisories and FAQs will be withdrawn from the GST Portal until further notice.

Click here for official release

2. Brazil

Brazil Defers Mandatory National E-Service Invoice Adoption for Small Businesses to November 2026

Brazil's Federal Revenue Service has confirmed that, under CGSN Resolution No. 191/2026, the mandatory use of the National Electronic Service Invoice (NFS-e) for businesses under the Simplified National Tax Regime, including micro and small enterprises, will take effect on November 1, 2026, postponing the previously scheduled implementation date of September 1, 2026. Affected taxpayers will be required to issue NFS-e through the National NFS-e Issuer, available via the web portal or API.

From November 1 through December 31, 2026, taxpayers must use the National NFS-e Issuer while remaining subject to the existing Simples Nacional rules. CBS and IBS obligations, including related fiscal document disclosure requirements, will remain deferred until January 1, 2027.

Click here for official release

3. France

France finalizes regulatory framework for mandatory e-invoicing and e-reporting

France has published Decree No. 2026-677 and an accompanying Order, both dated July 27, 2026, finalizing the regulatory framework for the country's mandatory B2B e-invoicing and e-reporting regime under the 2026 Finance Act. The measures introduce the renaming of Partner Dematerialization Platforms (PDPs) as Approved Platforms and replace references to the Public Invoicing Portal (PPF) with the Central Directory and the transmission of data to the tax administration.

The e-invoicing mandate, set by the 2026 Finance Act, will be implemented in phases, with large enterprises and mid-sized companies required to issue electronic invoices from September 1, 2026. The issuance requirement will extend to all remaining businesses from September 1, 2027.

Click here for official release

4. Belgium

Belgium approves dual near real-time VAT e-reporting proposal

Belgium's Council of Ministers has approved a preliminary bill introducing a dual near real-time e-reporting regime, requiring both suppliers and customers to report mandatory VAT invoice data. The proposal builds on Belgium's domestic B2B structured e-invoicing framework, which has been in force since January 1, 2026.

The government expects the measure to strengthen VAT compliance, enhance audit and fraud detection capabilities, and eliminate annual client-listing obligations for affected taxpayers. The proposal has been submitted to the Belgian Data Protection Authority and the Council of State for review.

Click here for official release

5. Luxembourg

Luxembourg proposes phased B2B e-invoicing rollout and Peppol-Based framework

Luxembourg's Ministry of Finance has submitted draft Law No. 8815, establishing a phased timeline for mandatory B2B e-invoicing. The proposal would require the receipt and processing of e-invoices from January 1, 2028, followed by mandatory issuance and transmission for large and medium-sized businesses from July 1, 2028, with the obligation extending to all businesses from January 1, 2029.

The framework leverages the Peppol network used for public procurement and is designed to prepare Luxembourg for the EU ViDA cross-border e-invoicing and digital reporting requirements effective July 1, 2030.

Click here for official release

6. Japan

Japan introduces Qualified Invoice System relief following Kumamoto Earthquake

Japan's National Tax Agency (NTA) has announced temporary relief under the Qualified Invoice System for businesses impacted by the 2026 Kumamoto Earthquake. Affected taxpayers may continue to claim input tax credits where qualified invoices or accounting records cannot be retained due to disaster-related circumstances, including where consumption-tax purchase records were lost, or where a supplier who is a Qualified Invoice Issuer was affected and could not issue an invoice, leaving the buyer unable to retain it.

The measures also permit eligible Qualified Invoice Issuers with base-period taxable sales of JPY 10 million or less to cancel their registration under special disaster provisions.

Click here for official release

7. Oman

Oman establishes mandatory e-invoicing framework

The Oman Tax Authority (OTA) has issued Decision No. 189/2026, amending the Executive Regulations of the VAT Law (Decision No. 53/2021, issued under Royal Decree No. 121/2020), to establish a mandatory electronic tax invoicing framework ("Fawtara") for VAT-registered (taxable) persons. Under the new framework, invoices must be issued, exchanged, and stored electronically through OTA-approved systems and service providers. Paper invoices, PDFs, and image-based invoices will not recognized as compliant e-invoices.

Implementation will be phased, beginning April 1, 2027, for businesses with annual supplies exceeding OMR 5 million and October 1, 2027, for VAT-registered businesses with annual supplies below the said threshold. A voluntary pilot with selected large taxpayers is scheduled to begin at the end of August 2026

Click here for official release

Cross border tariff updates

1. Switzerland

Switzerland's Federal Office for Customs and Border Security has published a customs tariff update effective 1st August 2026. The update revises MFN customs duty rates for certain agricultural products covered under Annex 2 of the Agricultural Imports Ordinance, including cereal seeds, animal feed, oilseeds, and related products. The update also introduces new HS tariff lines for edible vegetables, certain roots and tubers, with corresponding MFN customs duty rates assigned to the newly created tariff codes.

Click here for official release

2. Liechtenstein

Liechtenstein has implemented a customs tariff update effective 1st August 2026 . The update revises MFN customs duty rates for certain agricultural products covered under Annex 2 of the Agricultural Imports Ordinance, including cereal seeds, animal feed, oilseeds, and related products. The update also introduces new HS tariff lines for edible vegetables, certain roots and tubers, with corresponding MFN customs duty rates assigned to the newly created tariff codes.

Click here for official release

3. The United States

Update 1

The U.S. International Trade Commission (USITC) published Revision 14 of the 2026 Harmonized Tariff Schedule of the United States (HTSUS) on 31 July 2026, which incorporates Chapter 99 HS codes covering pharmaceuticals and their active ingredients.

Click here for official release

Update 2

Per Revision 15 of the Harmonized Tariff Schedule of the United States (HTSUS), published by the U.S. International Trade Commission (USITC) on August 4, 2026, the General customs duty rate for HTS subheading 9903.04.63 is reduced from 10% to 0%

Click here for official release

Update 3

The U.S. Census Bureau published the 2026 Schedule B-the Export tariff with changes in Heading 2930.90.92 and 2521.00 which is effective from 5th August, 2026.

Click here for official release

Update 4

The U.S. International Trade Commission published 2026 HTSUS Revision 16, implementing a Presidential proclamation (signed 31 July 2026) that establishes a four-year Section 201 safeguard tariff-rate quota (TRQ) on imports of quartz surface products under Sections 201 and 203 of the Trade Act of 1974. The measure applies to covered goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on 15 August 2026, with over-quota entries subject to new Chapter 99 HTSUS provisions;

Click here for official release

Update 5

United States — The President issued a proclamation temporarily suspending, for a period of 3 days, the additional (section 338) duties on Canadian alcohol, dairy, and motor vehicles, delaying them from 19th August to 22nd August 2026 12:01 A.M. The pause follows Canada’s stated commitment to remove the disputed discriminatory measures while negotiations continue.

Click here for official release

Update 6

The White House imposed new Section 232 tariffs on drone imports, citing national security risks and heavy reliance on foreign supply chains. From 3rd September, 2026, larger drones, thermal drones, docking stations and some components face 100% duty, while smaller drones face 25%; some components get 25% from 9th February 2027.

Click here for official release

Update 7

The U.S. International Trade Commission (USITC) published Revision 17 of the Harmonized Tariff Schedule of the United States (HTSUS), amending Chapter 99 temporary tariff provisions regarding Canadian alcoholic beverages, dairy products, and motor vehicles which is effective from 22nd August, 2026.

Click here for official release

4. Australia

Australia's Border Force has published Customs Notice No. 2026/30 on the indexation of customs duty rates for excise-equivalent goods, effective 3rd August 2026. The update revises MFN customs duty rates in Schedule 3 of the Customs Tariff Act 1995 for beer, spirits, and fuel products (diesel, ethanol, biodiesel, LNG, CNG, LPG), applying a 1.020 indexation factor based on the June 2026 CPI (102.31) versus the December 2025 CPI (100.32). These revised rates also apply to originating-goods schedules under Australia's FTAs (including ASEAN-Australia-New Zealand, India, China, RCEP, UK, and UAE), superseding ACN No. 2026/04 (alcohol) and ACN No. 2026/22 (fuel).

Click here for official release

5. Maldives

Maldives has updated its National Tariff Schedule 2026, effective 1st August 2026, with product-level MFN changes. The main updates appear in beverage and alcohol-related product lines, including energy drinks, soft drinks, non-alcoholic beer, beer made from malt, wine and spirits. The latest schedule also reflects higher MFN treatment for certain alcohol-containing food and juice products, including chocolate preparations containing spirit and several fruit and vegetable juices containing alcohol. Overall, the update sharpens MFN treatment for selected sensitive and beverage-related goods while keeping the broader tariff structure intact.

Click here for official release

6. South African Customs Union

In August 2026, the South African Revenue Service (SARS) updated Schedule 1, Part 1 of the Customs & Excise Tariff effective from 6th August 2026. This adjustment updated both the general tariff rates and the preferential trade agreement rates across all subheadings in Chapters 10 and 11, which pertain to wheat and wheat flour.

Click here for official release

7. Japan

Update 1

Japan Customs has published an updated Tariff Schedule effective from 1 August 2026, available on the official Japan Customs tariff portal. The updated schedule reflects revised tariff treatment across multiple HS chapters, including fish and crustaceans (Ch.3), vegetable saps and extracts (Ch.13), fixed vegetable fats and oils (Ch.15), preparations of meat and fish (Ch.16), cocoa and chocolate preparations (Ch.18), bakers' wares (Ch.19), preserved vegetables/fruit, jams and juices (Ch.20), and sauces, non-alcoholic beverages and undenatured ethyl alcohol (Ch.22).

Click here for official release

Update 2

Japan Customs has published a customs tariff update effective 8th August 2026. The update introduces new HS tariff lines under Chapter 72, covering iron and steel articles specifically flat-rolled products of iron or non-alloy steel and flat-rolled products of other alloy steel. New HS tariff lines have also been introduced under these categories, with corresponding MFN duty rates assigned to the newly created tariff codes.

Click here for official release

8. Turkey

Türkiye's Official Gazette (Resmî Gazete) dated 31 July 2026 (No. 33326) published the implementing tariff-quota communiqué for the Türkiye–Maldives Preferential Trade Agreement, which entered into force on 1 August 2026. Under the agreement, the Maldives eliminated customs duties on 293 tariff lines of Turkish goods (with 111 lines already duty-free), covering products such as iron and steel, aluminium, electrical components, home appliances, furniture, plastics, and cosmetics against an average Maldivian tariff rate of around 16%. In return, Türkiye grants duty reductions or exemptions on 154 tariff lines of Maldivian exports, primarily fish and seafood products including fishmeal, swordfish, and shrimp varieties, opening access to a market of approximately 85 million consumers.

Click here for official release

9. European Union

The European Commission, via the EU's Combined Nomenclature (CN) and TARIC database, has published a customs tariff update effective 1st August 2026. The update revises MFN customs duty and FTA rates for meat and edible meat offal; animal-origin products; meat, fish and aquatic invertebrate preparations; salt, sulphur, earths and stone; mineral fuels and oils; inorganic and organic chemicals; miscellaneous chemical products; plastics; rubber; wood; glass; iron and steel articles; machinery; electrical equipment; vehicles; and works of art. New HS tariff lines have also been introduced under these categories, with corresponding MFN duty rates assigned and mirrored under the applicable preferential FTA duty schedules, along with associated rate changes.

Click here for official release