Global VAT Guide: March 2026

The March edition of the Global VAT Guide features comprehensive updates on many VAT regulations and developments in Belgium, Italy, Poland, Sweden, China, Kazakhstan, Pakistan, South Africa and Turkey.

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

Belgium

Changes to Import VAT Payment – ET14000 Authorisation now available

On 15 January 2026, Belgium’s Tax Administration announced changes for managing the payment of import VAT.

The ET14000 authorisation, now available via the MyMinfin platform, allows businesses to defer import VAT payments until their periodic VAT return is filed.

This change means that businesses no longer need to pre-finance VAT at the point of importation, simplifying cash flow management.

To use the ET14000 authorisation, you must:

• Hold a valid EORI number
• Ensure your EORI number is linked to your Belgian VAT identification number.

Please note that holding the ET14000 authorisation excludes the normal VAT payment scheme at customs.

The authorisation applies to goods imported and declared to customs for release in Belgium.

The following is out of scope:

• Taxpayers under the small business exemption scheme
• Members of a VAT group (only the VAT group as a whole can apply).

The ET14000 authorisation is a practical tool for businesses seeking more efficient cash flow management when importing goods into Belgium.

Italy

New consolidated VAT law

Italy has introduced a new consolidated VAT code, known as Il Testo Unico IVA,  following an extensive legislative process. The measure received final approval and was published in the Official Gazette on 19 January 2026 as Legislative Decree No. 10.

The consolidated code brings together Italy’s existing VAT rules into a single, structured legal framework. It is organised into 18 sections and 171 articles, providing a clearer and more accessible reference point for taxpayers and advisors. Its purpose is to reorganise the existing VAT provisions in force into a single, coherent body of legislation, thereby simplifying the legal framework and promoting greater legal certainty and compliance.

Importantly, the reform does not introduce substantive changes to the current VAT rules. Instead it consolidates and systematises the provisions already in force.

The consolidated VAT code will apply in full from 1 January 2027, giving businesses and advisors sufficient time to familiarise themselves with the new structure and prepare for its implementation.

For finance and tax teams operating in Italy, the reform represents an effort to streamline VAT legislation while maintaining the existing regulatory framework.

Poland

VAT registration threshold increase

From 1 January 2026, Poland has increased the turnover threshold for mandatory VAT registration.

• Previous threshold: PLN 200,000 (approx. €47,000)
• New threshold: PLN 240,000 (approx. €56,000)

The change was confirmed in the Official Gazette (Nr. 896, 7 July 2025) and forms part of a broader deregulation package aimed at reducing administrative burdens for smaller businesses.

Additional considerations

• Proportional threshold for new businesses: Taxpayers starting operations during the tax year will continue to apply the proportional calculation of the threshold
• Transitional relief: Businesses whose 2025 sales in 2025 exceeded PLN 200,000 but remained below PLN 240,000 may benefit from the VAT exemption from 1 January 2026.

The Polish Tax Authority estimates that approximately 20,000 entities will benefit from the higher threshold, reducing VAT compliance and obligations for smaller businesses.

Sweden

Consultation on VAT rules for cross-border trade

On 13 February 2026, the Swedish government published consultation memorandum Fi2026/00342, proposing a technical review of VAT rules applicable to cross‑border trade.

The review aims to clarify and modernise VAT compliance obligations for businesses engaged in cross‑border transactions. It also seeks to ensure closer alignment with EU VAT regulations and reducing administrative complexity for taxpayers

The deadline for consultation responses is 8 April 2026 and will come into effect on 1 January 2027.

Businesses engaged in cross-border trade with Sweden may wish to monitor the consultation outcome, as the proposed changes could affect future VAT compliance requirements.

China

Updates to VAT return instructions and filing requirements

China’s tax authorities have issued updated guidance on VAT return instructions and filing requirements, effective for tax periods starting 1 January 2026.

The changes were introduced through State Taxation Administration Announcement No. 2 of 2025 Announcement No. 6 of 2026 (issued on 5 February 2026). They reflect recent legislative developments the new VAT Law adopted on 25 December 2024 and the Implementing Regulations of the VAT Law (State Council Decree No. 826) published on 31 December 2025.

Some of the key regulatory changes include:

• Streamlined reporting periods: Removal of 1-day, 3-day, and 5-day VAT reporting periods, streamlining VAT filing cycles.
• Revised VAT refund rules: Updates have been introduced to the treatment of VAT refunds and the reporting of carry-forward amounts.
• Clarified place-of-supply rules: The updated guidance confirms that the place of taxation is determined based on the place of consumption, in line with  Article 4 of the VAT Law.
• Withholding agent option: Under Article 15 of the VAT Law, businesses may now appoint an agent to act as a withholding agent on behalf of the purchaser

These updates align VAT filing procedures with the new legislative framework introduced in 2024 and 2025, providing greater clarity on reporting obligations for businesses operating in China.

China

VAT deduction of passenger transport service

On 30 January 2026, the Chinese State Taxation Administration (STA) published an announcement introducing new rules on the deduction of input VAT on domestic passenger transportation services.

To deduct input VAT, taxpayers must obtain and retain valid and compliant invoices for the relevant transport services.

The applicable rules are as follows:

• Rail and air transport (electronic railway tickets or air transport e-tickets):
  • VAT is deductible based on the VAT amount explicitly stated on the invoice

• Highway and waterway passenger transport (tickets indicating passenger identity information, such as name and passport/ID number):
  • Deductible VAT is calculated using the following formula: Ticket price ÷ (1 + 3%) × 3%

• Road tolls (electronic general VAT invoices bearing the wording “Toll” / “通行费”):
  • VAT is deductible based on the VAT amount stated on the invoice

• Bridge and gate tolls:
  • Deductible VAT must be calculated using the following formula: Toll amount ÷ (1 + 5%) × 5%

Taxpayers should ensure that the required documentation is properly obtained and retained in order to support the input VAT deductions related to passenger transport services.

Kazakhstan

New deadline for mandatory VAT registration

With the new Tax Code entering into force on 1 January 2026, Kazakhstan has introduced several updates to its VAT registration procedure.

There are three types of VAT registration:

• Voluntary
• Mandatory
• Conditional

Taxpayers whose turnover exceeds the maximum threshold of 40 million tenge* within a calendar year are subject to mandatory VAT registration.

The application for VAT registration must be submitted immediately after the threshold is exceeded and no later than five business days from the date it was crossed. Under the previous rules, taxpayers had ten business days to submit the application.

Another important change is that the tax authorities will no longer issue VAT registration certificates. Instead, VAT-registered taxpayers are required to issue electronic invoices and the VAT registration date will be indicated in a designated field on each eInvoice issued.

*The VAT registration threshold in Kazakhstan is determined based on the monthly calculation index (MCI). For 2026, the MCI is set at 4,325 tenge. The threshold corresponds to 10,000 times the MCI (i.e., approximately 40 million tenge).

Pakistan

Authority guidance for reporting digitally ordered goods in Sales Tax Returns

To improve tax collection in the e-commerce sector, Pakistan has implemented a system under which sales tax on digitally ordered goods is withheld at source.

Under this mechanism, the responsibility for withholding and depositing sales tax rests with intermediaries acting as withholding agents, including payment intermediaries, courier companies and online marketplaces.

To support implementation, the Federal Board of Revenue (FBR) has published a manual outlining the sales tax reporting obligations related to digitally ordered goods. The guidance is designed to facilitate compliance with filing and e-payment requirements and to enable taxpayers to properly claim related tax credits.

This manual is intended for payment intermediaries, courier companies, online marketplaces and other stakeholders responsible for withholding and reporting sales tax on digitally ordered goods. It specifically provides guidance on the following processes:

• Recording supplier details, including CNIC/NTN, registration number and invoice information.
• Entering invoice values and payments received, with automatic calculation of the sales tax withheld
• Uploading and verifying multiple supplier records through Excel files
• Creating e-payments, generating Payment Slip IDs (PSID), printing payment challans and obtaining Computerized Payment Receipts (CPR)
• Submitting monthly Sales Tax Withholding Statements for all withholding agents
• Claiming, adjusting or delinking sales tax credits through the main sales tax return
• Resolving discrepancies related to payments, statements or credit claims.

South Africa

VAT registration threshold increase

On 25 February 2026, the South African Revenue Service (SARS) published its Tax Pocket Guide summarising key information on taxes, duties and levies for the 2026/27 fiscal year.

In the area of Value Added Tax (VAT), the compulsory VAT registration threshold has increased from ZAR 1 million to ZAR 2.3 million per annum.

This change provides clarity for taxpayers and aims to reduce compliance burdens for smaller businesses.

Turkey

Amendments to the VAT return

On 3 February 2026, the Turkish Tax Authorities announced updates to the VAT Return format for tax periods starting from 1 January 2026.

Taxpayers submitting declarations through the e-Declaration system must update the Declaration Preparation Program via the “Required Programs” menu in the Digital Tax Office application.

Some of the key amendments to the VAT return includes:

• New table in the “Attachments” tab
  • A new table titled “Information on Invoices Issued from VAT Carried Forward from the Previous Period” has been added
  • This table must be completed where there is a change in the amount of VAT carried forward from the previous period due to the issuance of an invoice
  • The amount entered must be consistent with the “Invoice Issuance” line in the “Discount Type” column under the heading “VAT to be Deducted from the Previous Period” in the “Discounts” tab.

• New “Cancellation of Refund Declaration” line
  • A new line titled “Cancellation of Refund Declaration” has been added to the “Discount Type” column within the “VAT to be Deducted from the Previous Period” table in the “Discounts” tab.

• Mandatory explanation for transfer and merger cases
  • When selecting the “Transfer” or “Merger” options in the “VAT to be Deducted from the Previous Period” table in the “Discounts” tab, it is now mandatory to complete the “Explanation” field.

• Removal of transaction type
  • The transaction type relating to the withdrawal of products from the warehouse has been removed from the “Transactions with a Special Base Form” table in the “Tax Base” tab.

Businesses should ensure that their internal reporting systems are aligned with the updated return format to avoid filing errors for periods beginning 1 January 2026 onward.

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