Global VAT Guide: April 2026

The April edition of the Global VAT Guide brings together key VAT developments across Belgium, the Netherlands, Spain, Israel, Malawi, Morocco, Philippines, Switzerland, Togo and the United Kingdom.

This month’s updates underline a clear acceleration in global VAT digitalisation, tighter administrative controls and the continued expansion of VAT into the digital economy. Tax authorities are moving decisively towards real‑time, data‑driven compliance models, while jurisdictions across Africa and beyond are extending VAT obligations to non‑resident digital service providers, aligning taxation with the place of consumption and creating a more level playing field for domestic businesses.

Alongside these structural changes, authorities are strengthening documentation and evidentiary requirements for VAT recovery, as seen in the Netherlands and Switzerland, and reinforcing digital security through initiatives such as HMRC’s introduction of multi‑factor authentication for agents. These developments reinforce the need for businesses to prioritise system readiness, data quality and audit resilience as VAT compliance becomes more complex and increasingly digital.

Use this summary to stay informed of the latest regulatory changes, effective dates and compliance implications for your business.

Belgium

VAT chain overhaul from May 2026

Belgium is rolling out the next phase of its VAT chain reform, with key changes taking effect from 1 May 2026. The update was announced by the Belgian Ministry of Finance in March and follows the Act to modernise the VAT chain, published in the Belgian Official Gazette on 23 March 2023.

What’s changing from 1 May 2026?

• A new VAT provisions account (Compte‑provisions TVA / Btw‑Provisierekening) will replace the current VAT credits and debts account (Compte courant / Rekening‑courant)
• Payment management will be streamlined
• The VAT holiday scheme will be abolished, meaning summer filing deadline extensions will no longer apply
  • As a tolerance measure, no late filing penalties will apply to 2026 returns filed within the old holiday deadlines
• New VAT bank account numbers will be introduced
  • However, the new account will not be open for incoming payments as of April 2026
  • Until further notice, VAT payments linked to periodic returns must continue to be made to BE22 6792 0030 0047.

VAT refunds during the transition

• From 1 May 2026, refunds requested via the periodic VAT return will be limited to the amount shown in box 72
• Any remaining credit must be claimed via the VAT provisions account in MyMinfin
• If all VAT returns are filed by 30 April 2026, existing credits will be automatically transferred to the new account
• Where returns are missing, taxpayers will be given a short grace period to file before credits are refunded or offset against liabilities.

What’s next?

Several VAT chain measures have already been in force since 2025, and direct debit VAT payments are still to come. The tax authorities have confirmed further details will follow, but no timeline has been announced yet.

This reform continues Belgium’s move towards a more structured, automated and tightly managed VAT system.

Netherlands

Electronic copies of invoices now required for EU VAT refund claims

Effective from 1 April 2026, the Netherlands now requires electronic copies of supporting invoices to be submitted with EU VAT refund applications.

The change, announced by the Czech and Slovak Tax Authorities, applies where the Netherlands is the Member State of refund.

Under Council Directive 2008/9/EC, Member States can request electronic copies of invoices or import documents when the taxable amount is:

• €1,000 or more
• €250 or more in the case of fuel
• Or the equivalent in another currency

From this date, the Dutch Tax Authorities will not process EU VAT refund claims that do not include the required supporting documents. Businesses reclaiming Dutch VAT should ensure qualifying invoices are uploaded with their application to avoid delays or rejected claims.

Spain

Draft law signals new OSS rules for eCommerce traders

Effective from 1 January 2027 (phased ViDA rollout continues to 2030)

On 25 November 2025, Spain’s Council of Ministers approved, at first reading, a Draft Law to amend the VAT Act as part of the EU’s VAT in the Digital Age (ViDA) reforms.

While the main ViDA changes are planned for 1 July 2028 and 1 July 2030, this proposal introduces limited technical updates expected to apply from 1 January 2027.

Key points for eCommerce businesses

• The Union One-Stop Shop (OSS) scheme would be extended to cover services supplied to consumers not established in the EU
• Non-EU businesses would be required to appoint a tax representative in Spain when claiming input VAT refunds linked to e-commerce activities reported through the special OSS schemes.

Transitional measures

• A transitional regime for call-off stock will apply until 1 July 2028, when ViDA rules on transfer of own goods take effect
• Energy supplies through networks may continue to use the Union OSS scheme until 30 June 2028, after which they will be fully included in the scope of the special regime.

The Draft Law was open to public consultation until 23 December 2025. As of now, no further legislative steps have been taken by the Council of Ministers to date

Israel

Lower invoice thresholds under CTC allocation number system

Effective from 1 January 2026 (further reduction from 1 June 2026).

Israel continues to tighten its real-time invoicing controls under the Economic Efficiency Law 2023, aimed at reducing the use of fictitious tax invoices causing billions of shekels in lost state revenue annually.

Since 1 January 2024, tax invoices issued to customers registered as authorised dealers must include an allocation number issued by the Israeli Tax Authority through an online system. This allocation number is required in order to deduct input tax on invoices above a legally defined value threshold.

Updated thresholds

The Tax Authority has progressively lowered the threshold

• 2024: Allocation numbers required for invoices exceeding NIS 25,000
• 2025: Threshold reduced to NIS 20,000 (approximately €5,500)

On 17 March 2025, the Tax Authority announced further reductions for 2026:

• From 1 January 2026: Threshold reduced to NIS 10,000 (approximately €2,700)
• From 1 June 2026: Furthe reduced to NIS 5,000 (approximately €1,300)

Businesses operating in Israel should ensure their invoicing systems can request and include allocation numbers in real time as the thresholds continue to fall.

Malawi

VAT extended to foreign digital services

Malawi is expanding its VAT regime to cover digital services supplied by non‑resident companies, following legislative changes introduced as part of the 2026/27 National Budget.

On 27 February 2026, the Minister of Finance presented the Budget Policy Statement to the National Assembly, outlining plans to apply VAT to foreign digital service providers operating without a physical presence in Malawi. The measures target international platforms such as Netflix, Facebook and YouTube, which supply services including streaming, digital advertising, software and mobile applications to Malawian consumers.

The change is designed to:

• Remove unequal tax treatment between foreign digital service providers and domestic businesses, as locally supplied services are currently subject to VAT while equivalent foreign services are not
• Tax value generated in Malawi that has, to date, remained outside the VAT net.

On 31 March 2026, Parliament confirmed that the Money Bills required to implement the 2026/27 Budget, approved on 24 March 2026, had been passed. This includes Bill No. 5 of 2026 (Value Added Tax (Amendment)), which formally introduces VAT on digital services.

With this reform, Malawi joins a growing number of African countries taxing the digital economy, including Benin, Egypt, Ghana, Kenya, Tanzania, South Africa, Uganda and Zambia.

Morocco

VAT obligations for B2C digital services

Effective from June 2026.

Morocco has introduced new VAT registration and compliance requirements for non‑resident suppliers of B2C digital services.

On 18 December 2025, the Moroccan Official Gazette published Decree No. 2‑25‑862 (dated 27 November 2025), setting out the rules for foreign providers supplying digital services to consumers in Morocco.

Key requirements for non‑resident suppliers

• Mandatory VAT registration via a dedicated electronic platform
• Registration details must include:
  • Company and authorised representative details
  • Description of digital services provided
  • Date of the first supply made in Morocco.
• A tax identity number will be issued electronically once registration is completed

Ongoing compliance

• Quarterly VAT returns must be filed using the designated reporting form by the end of the month following each quarter.
• Suppliers must keep an electronic register of all remote services provided in Morocco, including:
• Client identity and VAT status
• Description of services
• Taxable amount and VAT charged
• Payment date and method

The Decree enters into force six months after publication, meaning the new obligations will apply from June 2026.

Philippines

Proposed temporary suspension of excise tax only

Several bills were filed in the Philippine Senate in February and March 2026, proposing a temporary suspension of VAT, excise tax, or both in response to rising fuel prices linked to the ongoing Middle East crisis.

These proposals (Senate Bill Nos. 1935, 1938 and 1942) were later consolidated and substituted by Senate Bill No. 1982 under Committee Report No. 48.

The consolidated bill removes all VAT‑related measures and retains only the proposal to temporarily suspend excise tax. No VAT suspension is included in the current version.

The measures aim to ease fuel price pressures on consumers and businesses. Further details, including the scope and timing of any excise suspension, have yet to be confirmed.

Switzerland

Foreign VAT refund procedure

The Swiss Federal Tax Administration (FTA) has updated its guidance on the foreign VAT refund procedure.

On 26 February 2026, the FTA revised subsection 1.4, Certification of Entrepreneur Status by the Foreign Tax Authority, in VAT Information No. 18. The update clarifies the evidence foreign businesses must provide when applying for a Swiss VAT refund.

What’s changed?

Applicants must now provide a Certificate of Taxable Status that covers the relevant refund period i.e. the full calendar year concerned

The certificate must confirm either:

• That the applicant was registered for VAT during the refund period, or
• The date from which the applicant has been registered for VAT purposes.

Foreign businesses seeking VAT refunds in Switzerland should ensure their documentation meets these updated requirements to avoid delays or rejections.

Togo

VAT on foreign digital services

Togo has updated its VAT framework for digital services supplied by foreign providers under Finance Act No. 002/2025, adopted on 31 December 2025 and applicable for the 2026 tax year.

Under the amended Article 185 of the Togo Fiscal Code, where electronic services supplied by a foreign individual, foreign company or online commerce platform are deemed to be taxed in Togo, VAT must be collected and remitted by the intermediary that facilitated the transaction, acting on behalf of the supplier.

What happens next?

The practical rules for VAT collection and reporting on foreign digital services will be set out in a Minister of Finance Decree, which has not yet been issued.

This change brings Togo further into line with the growing number of jurisdictions extending VAT to the digital economy. We’ll update this guidance once the implementing decree is published.

United Kingdom

MFA coming to HMRC agent sign‑in

Implementation starts 7 April 2026

HM Revenue & Customs (HMRC) is enhancing security for tax agents by introducing Multi‑Factor Authentication (MFA) to the agent sign‑in journey.

On 18 March 2026, HMRC’s Software Development Department issued advance notice of the change. The rollout will begin on 7 April 2026 with the an interim notification step.

What agents can expect

• Agents will continue to sign in using their User ID and password
• A new notification page will appear after sign-in, advising that MFA will soon be required
• The page will remain visible until MFA is activated and will link to guidance in the Tax Agent’s Handbook
• Once MFA is enabled, agents will be prompted to enter an access code as part of the sign-in process and the notification page will no longer appear

The updated sign-in journey will mirror the existing MFA process already used by individual and organisational users.

What’s not changing

• No changes are planned for the authentication processes linked to the Transaction Engine API or SOAP-based APIs
• The 18-month application authorisation-granting process will remain unchanged.

Agents should be aware of the upcoming change and prepare to adopt MFA as part of HMRC’s wider move to strengthen account security.

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