Global VAT Guide: July 2025

Our July edition of the Global VAT Guide features key regulatory updates and developments across multiple jurisdictions, including Belgium, Denmark, France, Greece, Ireland, Australia, Benin, Mauritius, Switzerland, Tanzania, the United Kingdom and Vietnam. Read on for a comprehensive summary of what’s new and what it means for your business.

Belgium

Alignment of NACE codes with EU standards

On 29 April 2025, the Belgian Tax Authority announced an update to the NACE-BEL codes (used to classify business activities) to align with the new European nomenclature NACE Rev. 2.1, as set out in Commission Delegated Regulation (EU) 2023/137 of 10 October 2022. 

The updated NACE Rev. 2.1 classification came into force from 1 January 2025 across the EU. 

The Tax Authority has published guidance explaining: 

• Where to consult the converted VAT activity codes 

• What steps to take if discrepancies or errors are identified 

Belgium joins other EU Member States — including Denmark, Italy, and Romania — that have already taken steps to align their national business activity codes with the updated EU classification system. 

Businesses are advised to review their registered activity codes in preparation for the upcoming changes and ensure that VAT records are up to date and correctly classified. 

Denmark

Updated guidance on correction of incorrectly charged VAT

On 21 May 2025, the Danish Tax Administration issued an update to its guidance regarding the correction of incorrectly invoiced VAT, revising its long-standing approach. 

There is no longer a requirement for the taxable person (supplier) to undertake to pass on the refunded VAT to the customer (invoice recipient). 

Any disputes about passing on the VAT are now a civil matter between the parties. 

Despite the simplified rule, several specific limitations still apply: 

• No credit note/ New invoice possible: 
  • Where it’s impossible to issue a credit note or a new invoice, the previous rules apply
  • The supplier may still be required to commit to passing on the refund to the customer

• Claims by buyers: 
  • In cases where claiming against the supplier is impossible or disproportionately difficult, and the VAT has already been paid to the Tax Agency, the buyer may file a direct claim with the agency 

• Supplier’s limitation defence: 
  • If the supplier invokes a limitation period against the buyer but still files or maintains a VAT refund claim, the Tax Agency will deny the refund to the supplier 

• Supplier already refunded: 
  • If the supplier has already received the refund, the customer cannot claim directly against the Danish Tax Agency 

• Employees wrongly registered as taxable persons: 
  • The agency will assess these cases on an invoice-by-invoice, client-by-client basis. 

The new practice is effective immediately, as of the publication date of the guidance (21 May 2025). 

France

Postponement of uniform VAT exemption threshold

In Press Release No. 434, issued at the end of April, the Ministry of Economy, Finance and Industrial and Digital Sovereignty announced a further postponement of the introduction of the uniform VAT exemption threshold of €25,000. 

This change was originally scheduled for March 2025 and postponed for the first time to June 2025. 

This change has been postponed again and is now rescheduled to take effect from January 2026. 

The reform aims to standardise the VAT exemption threshold across sectors, replacing the existing differentiated thresholds that currently apply separately to: 

• Sales of goods 

• Provision of services 

• Certain regulated professional activities 

Once implemented, the uniform €25,000 threshold will simplify VAT registration rules and bring France further in line with EU harmonisation efforts on small business VAT exemptions. 

Greece

Updated VAT return form and refund procedures

On 29 May 2025, the Greek Independent Authority for Public Revenue (AADE) issued Circular A.1077/2025, outlining significant changes to the VAT return form and associated procedures for VAT refund requests. 

These changes apply to VAT periods starting 1 July 2025, in line with the implementation of the new VAT Code (Law 5144/2024). 

The key changes to the VAT Return include: 

• Field updates: 
  • Certain form fields have been revised to reflect the new VAT Code 

• Automated refund request: 
  • A VAT refund will now be automatically initiated if: 
    • The requested refund amount is entered in Box 503 of the return. 
    • A valid reason for the refund is provided (excluding cases involving only the reduction of a debit balance). 

In a press release dated 5 June 2025, AADE provided further clarification regarding the IBAN (bank account number) reporting process, particularly to streamline VAT refund processing. 

Key IBAN-related changes include: 

• The IBAN field has been removed from the VAT return form

• Instead, the IBAN must now be registered in the AADE Registry prior to submitting a VAT return that includes a refund request

• Once registered, the IBAN does not need to be re-entered for future refund requests

IBAN registration options: 

• Through the myAADE online portal (myaade.gov.gr) 

• Via the myAADEapp mobile application under: Contact Information > IBAN 

Foreign IBANs: 

• If the refund bank account is held outside Greece or the SEPA zone (which includes the EU-27, UK, Switzerland, Iceland, Liechtenstein, Monaco, Norway, San Marino, Andorra and the Vatican) 

This must now be declared in the VAT return and a dedicated form titled “Declaration of a foreign IBAN account in countries outside SEPA for refunds” must be submitted via the myAADE portal. 

Ireland

Updated VAT guidance on admission to events

On 26 June 2025, the Irish Revenue Commissioners published eBrief No. 127/25, providing updated guidance on the VAT treatment of admission to events. 

The new guidance clarifies how VAT should be applied to different types of events and attendees. 

Key points from the guidance include: 

• Different event types covered: 
  • Physical (in-person) events 
  • Virtual (online) events 
  • Hybrid events (a combination of both) 

• Place of Supply Rules:
  •  The VAT treatment depends on where the event is considered to take place, which varies based on the format of the event and the status of the attendee 

• Applicable VAT Rates: 
  • The guidance outlines which VAT rates apply in various scenarios 

• Practical Examples Provided: 
  • A range of examples illustrates how VAT should be applied in common situations, aiding interpretation and compliance 

The VAT treatment hinges primarily on: 

• The nature of the event – whether it is held in person, online, or as a hybrid 

• The type of attendee – whether the attendee is a non-taxable person (e.g. consumer) or a taxable person (business) 

	Attendance in person	Virtual attendance
Supply to taxable person (B2B)	The place where the event actually takes place. [s.34(g) VATCA 2010 refers]	The location of the customer. [s.34(a) VATCA 2010 refers]
Supply to non-taxable person (B2C)	The place where the event actually takes place [s.34(ga) VATCA 2010 refers]	The location of the customer [s.34(gb) or s.34(kc) VATCA 2010 refers]

Australia

Proposal to increase GST registration threshold submitted to parliamentary budget office

A proposal to significantly increase the Goods and Services Tax (GST) registration threshold was submitted to the Parliamentary Budget Office (PBO) at the end of April. 

The current threshold for businesses is AUD $75,000 (assessed over the last 12 months, including the current month). 

The current threshold for non-profit organisations is AUD $150,000 (over the same 12-month period). 

Under the proposal, the GST registration threshold would be raised to AUD $250,000 for both businesses and non-profit organisations. 

If adopted, the policy would take effect from 1 July 2025. 

This measure is aimed at reducing administrative burdens for small enterprises and charities by exempting more low-turnover entities from mandatory GST registration. 

Benin

Reiterates VAT obligations for non-established digital platforms

In June 2025, the Benin tax authorities issued formal reminders to non-established digital platforms regarding their obligation to register, collect and report VAT on supplies made to consumers in Benin, under the country’s evolving e-commerce VAT regime. 

These obligations stem from the VAT legislation implemented via Circulaire E-commerce 0426-DC-SGM-DGI-DL-CDCFR, in effect since October 2023. 

All digital services and commissions facilitated through both local and foreign platforms—when supplied to customers residing or located in Benin—are subject to Benin VAT, regardless of the supplier’s place of establishment. 

No turnover threshold applies: all digital platforms must comply, regardless of sales volume. 

Below are some of the key compliance requirements 

• VAT Rate: 
  • Standard 18% on applicable digital services. 

• Filing Frequency: 
  • Quarterly VAT returns, due by the end of the month following each quarter. 

• Portal: 
  • Returns are submitted digitally via Benin’s official e-tax portal: 
  • https://e-services.impots.bj 

• Payment Currency: 
  • VAT can be paid in Benin CFA Francs, Euros, US Dollars, or Chinese Yuan. 

• Simplified Regime for Non-Established Platforms: 
  • No domestic invoicing or recordkeeping obligations. 
• If the customer is VAT-registered in Benin, the VAT liability shifts to the customer via reverse charge. 

• Platforms must maintain an up-to-date list of business customers who have declared their VAT registration and provide it periodically to the tax authorities. 

The following digital services are subject to Benin VAT when supplied to non-business consumers in Benin: 

• Digital products (e.g. software, updates, plug-ins) 

• Website hosting, online data storage, remote maintenance 

• Online marketplaces charging commissions on sales 

• Search engine and ad services, web traffic analytics 

• Streaming or downloads of music, films, games, TV, radio 

• Access to online publications, e-books, news and statistics 

• Distance learning and educational content 

• Any automated online services delivered via internet platforms in exchange for consideration 

Goods imports: VAT is collected at customs by the recipient. 

B2B transactions: Reverse charge applies if the customer is VAT registered, and the platform must keep records of such business clients. 

Overseas platforms under simplified VAT regimes must still comply unless exempted under specific provisions. 

This enforcement initiative underscores Benin’s alignment with the global trend toward taxing the digital economy, ensuring a level playing field between local and international providers and improving tax collection in the digital services sector.

Mauritius

VAT on non-resident digital services from 1 January 2026

As part of its ongoing efforts to enhance tax equity and adapt to the digital economy, the Mauritian government announced in its 2025–2026 Budget Speech (delivered on 5 June 2025) that specific digital and electronic services provided by non-resident suppliers will be subject to Value Added Tax (VAT) beginning 1 January 2026. 

Some of the key points include: 

• Effective Date is 1 January 2026. 

• Digital or electronic services supplied remotely by non-resident suppliers to consumers in Mauritius. 

• Services must be delivered over the internet or other electronic networks and rely on the internet for their provision. 

• This will improve VAT collection on cross-border digital transactions. 

The foundation for this measure was previously laid out in the Finance (Miscellaneous Provisions) Act 2020, which defines relevant digital/electronic services and outlines their taxable status when provided by non-resident entities to customers in Mauritius. 

Implementation measures (e.g. registration procedures, filing obligations, thresholds, and enforcement mechanisms) are expected to follow, likely via detailed regulations and guidance issued by the Mauritius Revenue Authority (MRA) in the coming months. 

Non-resident suppliers should begin assessing whether their services fall within scope and prepare for compliance obligations starting in 2026. 

This initiative reflects a broader global trend of integrating non-resident digital service providers into national VAT frameworks and signals Mauritius’ commitment to adapting its tax system to a digitally driven economy. 

Switzerland

Moves to digital VAT reporting for import tax deferral

On 16 June 2025, the Swiss Federal Authorities announced a key digital advancement in their import tax deferral process for VAT-registered businesses. 

Previously, businesses applying the import VAT deferral had to submit a separate paper form to declare the deferred import tax. 

As of the new update, this is no longer required. 

VAT-registered companies that opt to defer import VAT must now: 

• Declare the import tax directly in their online VAT return via the ePortal. 

• No longer submit a separate paper declaration for the deferred amount. 

This change streamlines the reporting process, reduces paperwork, and aligns Switzerland with the broader international trend toward digital tax compliance. 

It simplifies administrative procedures for businesses and encourages timely, accurate reporting. 

The move underscores the Swiss government’s commitment to modernising VAT processes and supporting business efficiency through digital transformation

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Tanzania

Proposal to expand VAT scope for the digital economy

In its 2025–2026 Budget Speech, the Ministry of Finance of the United Republic of Tanzania proposed several amendments to the Value Added Tax Act, CAP 148, aimed at enhancing VAT collection and expanding the tax base in the online and digital economy. 

Some of the key proposed VAT measures include: 

• Expansion of the definition of “Online Intermediation Services” 
  • Inclusion of online marketplace platforms and network marketing platforms within the definition. 
  • Objective: Address gaps in the current VAT framework where such platforms were not explicitly covered, thereby improving tax collection and bringing more digital transactions into the VAT net. 

• Taxation of non-resident online payment service providers 
  • Non-resident platforms that facilitate payments using local infrastructure (e.g. mobile money, online gateways) will be classified as financial intermediaries. 
  • Objective: Ensure VAT applies to cross-border digital payment services, capturing revenue from foreign-based platforms operating in Tanzania. 

• Reduced VAT rate for certain online B2C transactions 
  • A reduced VAT rate of 16% (down from 18%) will apply to online purchases by consumers, provided: 
    • The payment is made digitally, and 
    • The invoice confirms the transaction amount correctly. 
  • Objective: 
    • Encourage the use of electronic payments 
    • Discourage cash transactions 
    • Improve digital traceability of purchases for tax administration purposes. 

These proposed changes demonstrate Tanzania’s intent to modernise its tax system, align with global VAT trends in the digital space, and promote financial transparency. By bringing non-resident digital and financial platforms into scope, the government aims to level the playing field between local and foreign service providers while also incentivising digital payment adoption through reduced tax rates. 

Formal legislative amendments and implementation guidelines are expected to follow the Budget Speech. Digital platforms and payment service providers—both resident and non-resident—should review their operations in Tanzania and prepare for upcoming registration, reporting, and invoicing obligations. 

United Kingdom

HMRC updates guidelines on postponed VAT accounting for imports

On 9 June 2025, HMRC released updated guidance regarding the Postponed VAT Accounting (PVA) scheme for imports. 

This scheme allows UK VAT-registered businesses to account for import VAT on their VAT return, rather than paying it upfront at the point of entry. 

Under PVA, import VAT is calculated on the import declaration, but instead of immediate payment, it is recorded and, if applicable, reclaimed in the same return, streamlining the process and easing cash flow for importers. 

HMRC now requires written confirmation from the formal importer—i.e. the person or entity taking ownership of the goods upon importation—when a third party (such as a customs agent, freight forwarder, or logistics provider) is involved in the import process. 

This confirmation can be provided via a contract or a separate document. 

Additionally, third parties must be explicitly informed that the PVA scheme is being used. The following details must be clearly referenced in the customs declaration: 

• The importer’s VAT Registration Number 

• The importer’s EORI number 

This is essential for the VAT deduction and postponed accounting to be valid. 

These updates aim to enhance compliance and reduce the risk of misuse or fraud, while maintaining the core benefit of PVA: facilitating smoother and more efficient international trade for UK businesses. 

HMRC continues to support businesses with tools and schemes like PVA that promote growth and reduce administrative burdens—when used correctly and responsibly. 

Vietnam

New VAT regulation for non-resident e-commerce

The Vietnamese authorities have officially enacted Decree No. 117/2025/ND-CP, a key regulation impacting both domestic and non-resident digital platforms. 

Effective from 1 July 2025, the new rules impose tax withholding obligations on platforms facilitating sales of goods and services by third parties. 

Some of the key features of the New Decree include: 

• Scope and platform obligations:
  • Applicable to both domestic and non-resident digital platforms operating in Vietnam. 

• Platforms are required to: 
  • Deduct and withhold VAT and Personal Income Tax (PIT) from each transaction. 
  • Obtain a 10-digit tax code from the Vietnamese tax authority. 
  • File monthly tax returns using dedicated reporting forms prescribed in the Decree. 
  • Remit withheld taxes to the tax authority. 

The Applicable Tax Rates are: 

• Goods : 1%

• Services: 5%

• Transport & related services: 3%

Personal Income Tax (PIT) Withholding Rates: 

• For Vietnamese Resident Individuals: 
  • Goods: 0.5% 
  • Services: 2% 
  • Transport & related services 1.5% 

• For Non-Resident Individuals: 
  • Goods: 1% 
  • Services: 5% 
  • Transport & related services: 2% 

If a platform cannot clearly determine the nature of the supply or the residency status of the counterparty, the highest applicable tax rate for both VAT and PIT must be applied. 

This decree reflects Vietnam’s efforts to: 

• Expand the tax base in the digital economy. 

• Ensure better compliance and traceability in online transactions. 

• Enforce tax collection at the platform level, reducing risks of underreporting by sellers. 

Below are some action items for platforms that are affected by the new rules: 

• Platforms need to register with the Vietnamese tax authorities to obtain a 10-digit tax code 

• Update internal systems to apply correct VAT and PIT withholding rates based on transaction type and seller residency 

• Implement monthly reporting procedures in line with the Decree’s requirements 

• Monitor tax authority communications for updates and technical guidance. 

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