Sales Tax Holiday on Apparel – July 11–13, 2025
Sales of clothing footwear & school supplies priced below $100 per item will be exempt from state sales tax. Local governments may choose to participate or opt out.
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Sales and use tax updates
1. Mississippi
2. Tennessee
Back-to-School Sales Tax Holiday – July 25–27, 2025
Tennessee will waive state sales tax on clothing, school supplies, and personal-use computers purchased during the weekend of July 25–27, 2025. Eligibility requires each item to be priced at $100 or less for clothing/supplies and $1,500 or less for computers. Retailers are required to apply the exemption automatically at checkout (in-store and online to comply automatically.
Local Occupancy Tax Applies to First 30 Days Rent – Effective July 1, 2025
As of July 1, 2025, Public Chapter 364 subjects the first 30 days of any short-term rental stay—such as in Elkton, cabins, Airbnbs—to local occupancy taxes in Tennessee. This clarification applies no matter the full duration of the booking, ensuring consistent taxation across all short-term rental properties statewide.
3. Louisiana – Washington Parish
New 3% Hotel Occupancy Tax Effective July 1, 2025
The Washington Parish Tourism Commission, by official resolution passed during a public meeting on May 16, 2025, will implement a 3% occupancy tax—effective July 1, 2025—on the rent or fees charged to transient guests for overnight stays (hotels, motels, campgrounds, and overnight camping facilities). This tax, authorized under Louisiana Revised Statute 33:4574.1.1, will be devoted entirely to supporting tourism-related initiatives and promotional activities in the parish
4. Maryland
HB 352 – Broad Sales & Use Tax and Exemption Overhaul Effective July 1, 2025
Effective July 1, 2025, Maryland’s HB 352 enacts a sweeping update to its Sales & Use Tax (S&UT) structure. This legislation significantly expands what is taxable, removes key exemptions, and introduces a separate digital services tax. These changes are designed to modernize tax policy and ensure more consistent treatment of goods and services across both traditional and digital markets. Key highlights include:
- A new 3% “Tech Tax” applies to data processing, IT services, and software publishing—targeting industries under NAICS codes 518, 519, 5415, and 5132.
- Snack foods sold via vending machines, such as chips, candy, and bottled drinks, will now be taxed at 6%, eliminating a long-standing exemption and aligning vending sales with grocery and retail outlets.
- The exemption for custom computer software is repealed, meaning all tailored or specially developed software is now fully taxable at 6%, just like prewritten software. This change increases costs for businesses purchasing custom IT solutions.
- Photographic materials, including items like film, photo paper, and processing chemicals, are now subject to the 6% S&UT, affecting photography studios, labs, and commercial print services that previously operated tax-free.
- The previous exemption for precious metal bullion and coin sales over $1,000 is eliminated. Now, all bullion and coin purchases are taxable at 6%, impacting both investors and collectors with increased transaction costs.
- Digital goods and cloud-based services—when provided alongside data processing or IT support—are now subject to the new 3% digital services tax, broadening the taxable base to reflect today’s online economy.
- Rental motor vehicles will be taxed at a reduced rate of 3.5% of their fair market value, instead of the standard 6.5% excise tax that applies to vehicle purchases. This aims to ease the burden on short-term vehicle users.
5. New Mexico
Back‑to‑School Sales Tax Holiday – July 25–27, 2025
New Mexico will host a three‑day Back‑to‑School Gross Receipts Tax Holiday, starting 12:01 a.m. on Friday, July 25, and ending midnight on Sunday, July 27, 2025. During this window, qualifying purchases will be totally exempt from the state’s gross receipts tax (5.125% base plus local rates):
- Clothing and footwear priced under $100 each
- Desktop/laptop/tablet computers priced up to $1,000, plus computer hardware (e.g., printers) up to $500
- School supplies (for general classroom use) under $30
Note: Retailers may choose whether or not to participate, and non‑qualifying items remain taxed.
6. Utah
Economic Nexus – Effective July 01, 2025
Utah has removed the 200-transaction threshold for economic nexus. Only $100,000 or more in gross revenue as a threshold is applicable.
7. Puerto Rico
Back‑to‑School Sales & Use Tax Holiday – July 12–13, 2025
Puerto Rico’s Department of the Treasury will host a two-day sales and use tax holiday from 12:01 a.m. July 12 through midnight July 13, 2025. During this period, purchases of school uniforms and school supplies are exempt from the standard 11.5% IVU (10.5% state + 1% municipal). This annual event helps families save on essential back‑to‑school items.
8. Alabama
Back‑to‑School Sales & Use Tax Holiday – July 12–13, 2025
From September 1, 2025, to August 31, 2028, baby products and feminine hygiene products are exempt from state sales and use tax.Sales and use tax exemption provided for certain purchases of diapers, baby supplies, baby formula, maternity clothing, and menstrual hygiene products
VAT updates
1. Vietnam
Vietnam Extends VAT Reduction to 8% Until End of 2026
Effective July 1, 2025, Vietnam's National Assembly has officially extended the value-added tax (VAT) reduction, lowering the standard rate from 10% to 8% for eligible goods and services. This extension will remain in effect until December 31, 2026, as part of ongoing efforts to stimulate economic growth and support businesses.
2. Argentina
Argentina to implement New Simplified VAT Declaration System in 2025:
Argentina’s tax authority, ARCA, has announced the rollout of a new system called “IVA Simple”, aimed at streamlining the VAT (Value Added Tax) declaration process.
Starting optionally in June 2025 and becoming mandatory in November 2025, this new system will introduce a single pre-filled form (Form F. 2051) to replace several existing ones (F. 731, 810, 2002, and 2082). The system follows a three-stage process:
Electronic registration of transactions
Automated tax calculation
Final VAT liability determination
Taxpayers will be able to review and modify pre-filled information, making filing more efficient and accurate.
3. Slovenia
Slovenia Updates VAT-O Form to Enhance Pre-Filled Returns
Effective May 29, 2025, Slovenia's Financial Administration (FURS) has updated the VAT-O (DDV-O) form, introducing three optional fields to improve communication and streamline the pre-filled VAT return process:
ID of Records: This field is used when FURS pre-fills the VAT return, allowing for better tracking and reference.
Preparer's Name and Phone Number: These fields enable FURS to contact the individual responsible for preparing the VAT return, facilitating quicker resolution of any issues or queries.
These enhancements aim to simplify the VAT return process and ensure more efficient communication between taxpayers and the tax authority. You can find the updated form schema here
4. Italy
Quarterly VAT Payment Introduced for Flat-Rate Taxpayers under Reverse Charge Mechanism
As per Legislative Decree No. 81/2025, published in the Official Gazette on June 12, 2025, Italy has introduced a quarterly VAT payment option for flat-rate scheme taxpayers (regime forfetario) when accounting for reverse charge transactions. This change is set out in Article 6 of the decree.
Previously required to remit VAT monthly under the reverse charge mechanism, flat-rate taxpayers can now benefit from reduced compliance frequency. The reform is part of a broader set of measures approved by the Council of Ministers on June 4, 2025, aimed at simplifying tax procedures for small businesses and professionals.
5. Portugal
Portugal: Annexes O and Q No Longer Required for 2024 IES/DA Returns Onward
Portugal has introduced important changes to the IES/DA (Annual Tax and Accounting Return) filing process for the 2024 fiscal year and beyond, as part of the 2025 filing updates:
- Annexes O and Q are no longer required for returns related to FY2024 onward.
- A new cover page format has been introduced (effective 17 April 2025).
- The offline submission tool has been updated to version 25.0.4.
- The revised XML schema updated
- Use of the official Portuguese Tax Authority software is now mandatory for filing.
These changes aim to streamline the filing process and reduce the reporting burden on taxpayers.
6. Finland
Finland Proposes Reduced VAT Rate from 14% to 13.5% Starting 2026
The Finnish government has proposed reducing the 14% VAT rate to 13.5% for essentials such as food, restaurant and catering services, transport, accommodation, pharmaceuticals, and cultural services. At the same time, the VAT rate on public broadcasting services would rise from 10% to 13.5%, aligning it with the general reduced rate.
The proposal is part of the government’s mid-term policy review and 2026 budget framework.
The Ministry of Finance has opened a public consultation, with feedback due by August 15, 2025.
The government has indicated an intended start date in early 2026
E-invoicing and live reporting updates
1. Malaysia
Malaysia revises e-Invoice implementation timeline with phased rollout
The Inland Revenue Board of Malaysia (IRBM) has released updated e-Invoice implementation guidelines, introducing a phased approach based on annual turnover thresholds. The six-month relaxation period will apply after each start date to support a smooth transition to mandatory e-Invoicing.
Revised Implementation Schedule:
- 1 August 2024: Taxpayers with turnover exceeding RM100 million
- 1 January 2025: Turnover above RM25 million up to RM100 million
- 1 July 2025: Turnover above RM5 million up to RM25 million
- 1 January 2026: Turnover above RM1 million up to RM5 million
- 1 July 2026: Turnover up to RM1 million
2. Latvia
Latvia postpones mandatory e-invoicing for businesses to 2028
On June 5, 2025, the Latvian Parliament (Saeima) adopted amendments to the Accounting Law, which were officially published on June 12, 2025, in Latvijas Vēstnesis.
These amendments postpone the mandatory implementation of structured electronic invoicing for all businesses to January 1, 2028.
The extended timeline offers additional preparation time for small businesses, self-employed individuals, religious organizations, and public institutions.
Structured e-invoicing has already been mandatory for business-to-government (B2G) transactions since January 1, 2025. For private sector transactions, the use of structured e-invoices will remain voluntary until the revised 2028 deadline.
3. Denmark
Denmark publishes CIUS and BIS3-other packages effective 25 august 2025
The Danish Business Authority has released updated e-invoicing specifications: CIUS v1.15.0 and BIS3-Other v1.2.12, both of which will become mandatory from 25 August 2025.
Key updates include:
CIUS v1.15.0:
Incorporates Peppol Schematron v3.0.19
Includes revised validation rules for CVR numbers and local business logic
BIS3-Other v1.2.12:
Applies to non-invoice Peppol documents
Includes Schematron update to v3.0.15
These changes align Danish e-invoicing standards with the latest Peppol compliance requirements.
4. Peppol
Release of Peppol BIS billing version 3.0.19 – effective 25 august 2025
OpenPeppol published version 3.0.19 of the Peppol BIS Billing specification, with mandatory adoption from 25 August 2025. The update includes validation rule changes, VATEX codelist integration, corrections to currency and VAT ID checks, and Denmark-specific rule refinements. Updates apply to both invoices and credit notes.
5. U.A.E
Openpeppol publishes PINT AE specification for UAE e-invoicing
OpenPeppol has officially released the PINT AE (Peppol International Invoice – UAE) specification, which sets the technical standard for e-invoicing in the United Arab Emirates. Based on Peppol BIS Billing 3.0 and compliant with EN 16931, the specification includes:
A localized data model tailored for the UAE
Validation artefacts and business rules
Support for both B2G and B2B transactions
The use of PINT AE will become mandatory from 1 July 2026, aligning with national efforts to digitalize tax and invoicing processes.
6. France
France introduces XP Z12-014 for B2B e-invoicing
On 13 June 2025, France published XP Z12-014, a standard that formalizes the operational framework for B2B e-invoicing under the national reform. It specifies accepted invoice formats (UBL, UN/CEFACT CII, Factur-X), key lifecycle statuses (Filed, Rejected, Refused, Collected), and the roles of SELLER, BUYER, PDPs, and the PPF.
The standard streamlines processing by clarifying mandatory vs. optional features, shifts emphasis from the PPF to PDP-driven interoperability, and presents 36 standardized use cases to guide real-world implementations. It also advances goals related to VAT control and digital readiness beyond basic compliance.
7. Croatia
Law on Fiscalization Published in Official Gazette impacting e-invoicing (NN 89/2025)
The Law on Fiscalization, published in Narodne novine No. 89/2025, mandates electronic invoicing and real-time reporting for all B2B, B2G, and B2C transactions in Croatia.
Using a continuous transaction control (CTC) model, both issuers and recipients must report invoice data and statuses to the Tax Administration.
The law requires structured eInvoices (EN 16931), digital signatures, and metadata publication. Online and digital B2C payments are now included. Key tools include FiskAplikacija, MIKROeRAČUN, and e-Reporting.
Implementation timeline:
- 1 September 2025: Law enters into force; test environment opens
- 1 January 2026: Mandatory for VAT-registered businesses
- 1 January 2027: Extended to non-VAT entities
Cross border tariff updates
1. The United States
Update 1
Imposition of Additional Duties on Canadian Energy and Energy Resources:
Pursuant to a recent Executive Order, specific energy products and natural resources originating from Canada are now subject to additional duties upon import into the United States.
Update by U.S. Customs and Border Protection (CBP):
The CBP has issued an updated list of Canadian energy and energy resource products that fall under the scope of these additional duties.
Effective Date: 15 May 2025
Update 2
Increase in Tariff Rates:
President Trump has announced an increase in tariffs on steel and aluminum imports, raising the rate from 25% to 50%. This adjustment reflects a significant escalation in trade measures.
United Kingdom Tariffs Unchanged:
Tariffs on steel and aluminum imports originating from the United Kingdom will remain at the current rate of 25%.
Scope of Tariff Application:
The revised tariffs will apply exclusively to the steel and aluminum content within imported products. Any non-steel and non-aluminum components of such products will be subject to other applicable tariff rates, as determined by relevant customs classifications.
Effective Date: 4 June 2025
2. Saudi Arabia
Revisions to HS Code Classifications:
The Saudi Customs Authority has announced additions and deletions of Harmonized System (HS) codes across multiple chapters of the customs tariff schedule.
Updates to Import Duty and Preferential Rates:
Adjustments have been made to import duty rates and preferential tariff rates under the Saudi customs tariff framework.
Effective Date: 1 June 2025
3. European Union
- HS Code Updates:
New Harmonized System (HS) code classifications have been introduced for products falling under the category of iron and steel. - Import Duty Revisions:
Updated import duty rates have been implemented for the following product categories:
a. Live trees and other plants
b. Edible vegetables and certain roots and tubers
c. Edible fruits and nuts
d. Cereals
e. Iron and steel
Effective Date: 1 June 2025
4. Gulf Cooperation Council (GCC)
Preferential Rate Adjustment – UAE–Serbia Agreement
The Gulf Cooperation Council has implemented changes to preferential tariff rates under the bilateral agreement between the United Arab Emirates and Serbia, covering selected product categories.
Effective Date: 3 June 2025
5. United Kingdom
- HS Code Revisions – Iron and Steel
The UK has released updated HS code classifications for products within the iron and steel category. - Tariff Rate Changes – Edible Fruit, Nuts, and Wood Products
The UK has announced updates to both general and preferential tariff rates for the following product categories:
a. Edible fruit and nuts
b. Wood and articles of wood, including wood charcoal
Effective Date: 10 June 2025
Tariff Changes – Edible Fruit, Coffee, and Tea
Switzerland has introduced updates to import duties, including both general and preferential rates, for the following categories:
a. Edible fruits
b. Coffee
c. Tea
Effective Date: 15 June 2025
6. Norway
Preferential Rate Revisions – Agricultural and Food Products
Norway has revised preferential tariff rates for the following product groups:
a. Meat and dairy products
b. Edible products of animal origin
c. Vegetables, fruits, and nuts
Effective Date: 16 June 2025
7. Mauritius
Semi-Annual Import Tariff Update
The Mauritius Revenue Authority has published its biannual update to the import tariff schedule.
Effective Date: 6 June 2025
8. Madagascar
Semi-Annual Import Tariff Update
Madagascar Customs has issued its half-yearly update to import tariffs.
Effective Date: 6 June 2025
