Global VAT Guide: August 2026

The August 2026 edition of the Global VAT Guide brings together key VAT developments across France, Netherlands, Norway, Slovenia, Turkey, Azerbaijan, Oman, Saudi Arabia, Indonesia and Sri Lanka.

As governments continue to accelerate digital tax transformation, this month’s developments reinforce a clear trend: tax authorities are increasing transparency requirements while simplifying how data is collected and reported. New eInvoicing mandates are moving from planning to implementation, digital services taxation continues to expand and several jurisdictions are introducing new compliance obligations for non-resident businesses. Early preparation remains the best defence against costly compliance gaps as tax administrations continue to modernise their indirect tax frameworks

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

France

DGFiP issues practical gudiance ahead of mandatory eInvoicing

France’s tax authority (DGFiP) has published a detailed practical guide covering implementation of the mandatory eInvoicing regime beginning on 1 September 2026 for large and medium-sized businesses. The guidance addresses how businesses should manage invoice rejections, routing failures and temporary technical disruptions.

For more information, read our latest blog on France’s published guidance ahead of the September 2026 eInvoicing mandate.

Netherlands

VAT refund portal changes delayed

By an official announcement issued on the 16 July, the Dutch tax authorities have postponed planned changes to VAT refund filing processes for both EU and non-EU businesses. Electronic filing requirements originally scheduled for 2026 (30 June 2026 for EU refund claims) will not proceed as planned and revised implementation dates have not yet been announced.

Businesses reclaiming Dutch VAT can continue using existing processes while awaiting further guidance. However, companies should continue monitoring announcements as future implementation dates are expected. The tax authority will publish more information about the new procedures and the new start dates as soon as it is available.

Norway

Consultation on VAT exemption for international postal services

Effective date: Expected 1 January 2027

Norway has launched a consultation proposing a VAT exemption for postal items sent abroad where the destination can be documented. The consultation deadline is 29 July 2026 and the proposal is expected to take effect from 1 January 2027. The measure could reduce VAT costs for postal operators and businesses engaged in international mailing activities. It also reflects broader efforts to modernise VAT treatment of cross-border services.

Slovenia

Tax Administration introduces summer tax holiday

Effective date: From 27 July to 14 August 2026

The Slovenian Tax Authority (FURS) has introduced a three-week “tax holiday” period during which it will generally refrain from requesting additional taxpayer documentation and explanations. It will be between 27 July and 14 August 2026 and is intended for entrepreneurs, companies, accountants and tax advisors.

All key services will continue to be available to taxpayers. In order to ensure the day-to-day operation and protect the interests of the obliged entities, the following will be carried out smoothly:

• Dealing with urgent matters (prevention of statute of limitations)
• Assessment of real estate transfer tax, motor vehicles and inheritance and gifts
• Handling applications for VAT and excise duty refunds
• Customs procedures
• Deciding on the deferral or instalment payment of tax liabilities and certain other procedures.

Although tax authority interactions may be reduced, legal deadlines are not interrupted. Statutory filing of returns, payment of tax liabilities and appeal deadlines remain fully in force. Businesses should not assume compliance obligations have been suspended. Tax holidays are an opportunity to relax and recharge your batteries. By being aware of the unchanged deadlines, make sure that your summer break is really carefree.

Turkey

New eInvoice package released

Effective date: 14 September 2026

Turkey has published updated technical documentation for its e-Factura framework. The new package becomes effective from 14 September 2026.

Businesses integrated with Turkey’s eInvoice ecosystem will need to ensure systems and service providers are aligned with the revised technical specifications.

Azerbaijan

New registration requirement for non-resident digital businesses

From 1 September 2026, non-resident suppliers of digital services to consumers in Azerbaijan must register and charge 18% VAT where annual turnover exceeds USD 10,000 within a calendar year. The rules apply solely to B2C transactions. Non-residents with turnover below this threshold may register voluntarily. Non-residents operating through a permanent establishment in the Republic of Azerbaijan aren’t covered by these rules.

Digital services include e-commerce supplies including eBooks, music, audio and video materials, virtual games, software, online advertising. Registered traders must file a monthly return by the 20th of the month following the reporting period.

The customer’s location in Azerbaijan is determined based on the following indicators:

• Payment is made through a bank or payment service provider in the Republic of Azerbaijan
• The IP address is associated with Azarbaijan
• The mobile operator code (+994) is used
• The residence or registration address is the Republic of Azerbaijan

The measure significantly expands VAT obligations for foreign digital service providers and aligns Azerbaijan with international VAT treatment of digital services. Businesses supplying software, subscriptions, gaming, media and online advertising services should assess exposure immediately.

Fintua helps digital businesses stay compliant, we can assess and monitor your obligations to register, manage your global VAT registration and provide regulatory monitoring.

Oman

Fawtara eInvoicing mandate goes live for large taxpayers

Effective date: 1 August 2026

The official rollout of Oman’s eInvoicing mandate is currently underway. Oman launched Phase 1 of its Fawtara eInvoicing programme on 1 August 2026 covering a group of large VAT-registered taxpayers. The framework will ultimately apply to all VAT-registered businesses.

For B2B transactions, the technical framework requires real-time data validation utilising a decentralised 5-corner model. Structured invoices must be generated in compliance with international Peppol standards using machine-readable XML formats. Standard paper or plain PDF documents will no longer meet statutory requirements

Upcoming implementation phases and timelines:

• Phase 2 (February 2027): All large VAT-registered companies – Expanded to include all remaining large VAT-registered enterprises
• Phase 3 (August 2027): Full Private Sector Rollout – All remaining VAT-registered taxpayers, including small and medium-sized enterprises
• Phase 4 (Date not announced yet): Public Sector Integration – Enforced for all government institutions and entities

Тaxpayers not included in Phase 1 who wish to align their ERP infrastructures early are officially permitted to enter on a voluntary early adoption track, with necessary administrative support provided by the authority. The initiative represents one of the most significant digital tax projects currently underway in the Gulf region. Businesses operating in Oman should expect growing requirements around real-time invoice validation, XML invoicing standards and ERP integration.

Saudi Arabia

Penalty relief programme extended until 31 December 2026

Effective date: Extension effective from 1 July to 31 December 2026

The Zakat, Tax and Customs Authority (ZATCA) of Saudi Arabia announced on the 30 June 2026, that the Minister of Finance has approved an extension of its tax penalty relief initiative, “Cancellation of Fines and Exemption of Financial Penalties Initiative”, until 31 December 2026.

The programme covers exemptions from fines for late registration under all tax laws, late payment, late filing of tax returns and penalties related to correcting VAT returns. To qualify for these exemptions, taxpayers must satisfy the following compliance criteria:

• Maintain an active registration status with ZATCA
• Submit all outstanding or overdue tax returns to the authority
• Pay the principal amount of all outstanding tax liabilities in full

Taxpayers also have the legal right to apply for a structured instalment payment plan. To remain eligible, the instalment request must be submitted before the initiative’s expiration date, and all approved payments must be settled on their scheduled due dates. Crucially, the authority clarified that specific exclusions apply. The relief program does not cover:

• Penalties arising from tax evasion violations
• Fines imposed under Article 45 of the Value Added Tax Law
• Any financial penalties already settled before the initiative took effect
• Penalties linked to tax returns or compliance obligations that become due after 30 June 2026

ZATCA also noted that if the initiative is extended beyond 31 December 2026, any future rounds will continue to exclude fines related to tax obligations due after the June 30, 2026, cutoff. All in-scope entities are strongly encouraged to utilise this grace window to regularise their tax positions before the final year-end deadline. The extension provides an opportunity for businesses to resolve outstanding compliance matters without incurring significant financial penalties.

Indonesia

VAT exemption on domestic economy flights

Effective date: 27 April 2026

The Indonesian government introduced a temporary VAT incentive whereby 100% of VAT on domestic scheduled economy-class flights is borne by the government. This incentive is in response to rising aviation fuel prices and to maintain the public’s purchasing power. The measure came into force on 27 April and remains valid until revoked.

Air travel businesses must maintain compliant invoicing or equivalent documentation for each transaction. As well as submitting a periodic VAT Notification Letter in line with prevailing tax regulations.

Sri Lanka

VAT registration rules extended to non-resident digital services providers

Effective date: Applies from 1 July 2026

On the 13 July 2026, Sri Lanka tax authorities introduced mandatory VAT registration requirements for non-resident digital services providers supplying electronic services to consumers. Registration applies where turnover exceeds prescribed thresholds.

• LKR 60 million (approximately €23,000) during any consecutive 12-month period or
• LKR 15 million (approximately €92,000) in any quarter beginning on or after 1 July 2026.

VAT won’t be charged by a non-resident person if the recipient of the services is a VAT-registered person in Sri Lanka. The Commissioner-General will be issuing further guidance on the registration process, charging and payment of VAT, and compliance requirements.

This continues the global trend of taxing cross-border digital services and brings additional compliance obligations for foreign technology, media and e-commerce businesses.

Work with indirect tax experts

Navigating global indirect tax doesn’t have to be complicated. At Fintua, our dedicated team brings clarity to compliance. Whether you’re expanding into new markets or streamlining existing obligations. We combine expert insight with tailored technology to support businesses in a digital-first landscape. Whatever the jurisdiction, whatever the challenge – we’re ready. 

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