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Onondaga and Ulster Counties: Cents-Per-Gallon Local Sales and Use Tax Method Repealed (Effective September 1, 2026)

Effective September 1, 2026, Onondaga and Ulster Counties have repealed their election to calculate local sales and use tax using the cents-per-gallon method.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.

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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.

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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.

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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.

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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.

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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.

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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).

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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.

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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.

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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.

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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%

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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.

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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;

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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.

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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.

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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.

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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).

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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.

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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.

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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).

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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.

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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.

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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.

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