Vietnam Confirms No VAT on Crypto Asset Transfers

Vietnam’s Finance Ministry has clarified that the transfer and trading of crypto assets are not subject to VAT, confirming that these transactions fall outside the scope of value added tax during the pilot-market period. The guidance appears to draw a clear line between crypto transfers themselves and other activities, with only non-specified services remaining subject to the normal VAT rules.

For VAT purposes, the key point is that crypto asset transfers and trades are treated as non-VATable, rather than as taxable supplies. The article also notes that this position is set out in Circular 32/2026/TT-BTC, issued in the context of Vietnam’s crypto market pilot framework.

Cyprus Cuts VAT on Household Electricity to 5% Through March 2027

Cyprus has moved to temporarily lower the reduced VAT rate on certain electricity supplies to 5%, down from 8%, under Decree No. K.D.P. 167/2026 published in the Official Gazette on March 27, 2026. The measure applies to electricity supplied to private residences, public assistance recipients, and thermal energy storage systems covered by the domestic-use tariff, with the lower rate taking effect from May 1, 2026, through March 31, 2027. The change updates the country’s VAT schedule and is aimed at easing electricity costs for qualifying users.

Spain Applies Temporary 10% VAT Rate to Energy and Fuel Supplies

Spain’s tax authorities announced that, from 22 March 2026 to 30 June 2026, a 10% VAT rate applied to certain deliveries, imports, and intra-Community acquisitions of electricity, natural gas, briquettes, pellets, firewood, gasoline, diesel, and biofuels. The measure was introduced under Article 42 of Royal Decree-Law 7/2026 as a temporary relief measure.

Ecuador - SRI narrows 0% VAT treatment to food products expressly listed in Article 55

Ecuador’s tax authority (SRI) has tightened the application of VAT on food products, clarifying that only items explicitly listed in Article 55 of the Internal Tax Regime Law qualify for the 0% VAT rate.

Under Circular NAC-DGECCGC26-00000002, published March 31, 2026, all other food products will be subject to the standard 15% VAT. This includes processed, prepared, flavored, fortified, or mixed food items.

The SRI reaffirmed that only food in its natural state—or minimally processed without altering its nature—remains zero-rated. However, bundled products may be fully taxed at 15% if they include even one taxable item.

The guidance requires businesses to reassess product classification, correct prior filings where needed, and evaluate potential VAT, interest, and penalty exposure, if applicable.

Poland - Temporary Fuel Relief Package cuts VAT to 8% and introduces price controls

Poland’s government has launched a new fuel price relief initiative aimed at cushioning consumers from rising energy costs, announcing a sharp reduction in value-added tax (VAT) on gasoline and diesel alongside planned price controls.

The package, titled “CPN – Ceny Paliwa Niżej” (Lower Fuel Prices), reduces VAT on motor fuels from 23% to 8%, marking a significant fiscal intervention to address inflationary pressures and high fuel prices.

In addition to the tax cut, authorities will introduce a government-controlled pricing mechanism that sets maximum retail fuel prices. The measure is intended to ensure that tax reductions and lower excise duties are passed directly on to consumers, rather than absorbed within the supply chain.

Fuel suppliers and retailers are required to apply the reduced VAT rate and adjust their pricing structures accordingly. They must also comply with any price caps issued by the government, adding a layer of regulatory oversight to the sector.

The measures took effect on March 31, 2026, and are expected to remain in place temporarily, subject to legislative approval and further policy decisions.

The initiative forms part of Poland’s broader efforts to mitigate the impact of inflation on households and stabilize essential commodity prices.

Cambodia Cuts VAT on Fuel to 4% to ease rising costs

Cambodia has introduced a temporary reduction in value-added tax (VAT) on gasoline and diesel, lowering the rate from 10% to 4% in a bid to reduce fuel prices and ease cost-of-living pressures.

The measure, announced by the Ministry of Economy and Finance through the General Department of Taxation (GDT), applies specifically to the domestic supply of gasoline and diesel. Other petroleum products, including lubricants, kerosene, and LPG, will continue to be taxed at the standard 10% VAT rate.

Under the new rules, fuel importers and distributors must apply the reduced 4% VAT rate on sales and issue invoices reflecting the change. Consumer prices are expected to decline as the lower tax is passed on at the pump.

Businesses will also need to adjust their VAT reporting and systems, as the GDT introduces a new 4% VAT category within its e-filing framework. Input VAT credits can still be claimed based on the actual VAT incurred, whether at 10% or 4%, depending on the transaction.

The tax relief took effect on March 20, 2026, and will remain in place until further notice.