Global Corporate Tax News

Issue 3/2026 - July 2026

Highlighted in the July 2026 Indirect Tax News are developments signaling recalibration of the global indirect tax landscape, with authorities tightening frameworks, modernising compliance and sharpening their focus on economic substance. Recent developments—from e-invoicing mandates to VAT grouping reforms and evolving interpretations of intermediary rules—underscore a clear trend: VAT outcomes are increasingly driven by how businesses actually operate, not how arrangements are drafted.

• In the UAE, the UAE Ministry of Finance has taken a measured step by extending the Accredited Service Provider appointment deadline to 30 October 2026 for large taxpayers, while maintaining the 1 January 2027 e-invoicing go-live date. The extension provides additional preparation time rather than a reprieve—systems upgrades, process redesigns and data readiness remain critical priorities as penalties loom for late or incomplete compliance.
• Botswana is embarking on its most significant VAT overhaul in years. Effective 1 June 2026, remote digital services fall squarely within the VAT net, government entities and large unregistered businesses face reverse charge obligations, and electronic fiscal devices become mandatory for all VAT registrants. With registration deadlines already in motion, businesses have a narrow window to align systems and processes.
• Germany is preparing for a structural rethink of VAT grouping. Under consultation, the Annual Tax Act 2026 would replace automatic “Organschaft” formation with an explicit declaration requirement and confirm the eligibility of partnerships, aligning domestic rules with recent EU and Federal Fiscal Court decisions. If enacted, the new regime would take effect from 2029, offering clarity but also demanding proactive group-level governance. 
• In Spain, recent decisions of the General Directorate of Taxes and the Central Economic-Administrative Court reinforce a substance-driven approach to VAT exemptions and special regimes. Whether in healthcare, financial services or business transfers, the authorities continue to prioritise economic reality over contractual form—an approach increasingly mirrored across Europe.

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Source: BDO Global