CNPJ Format Change

Written by Ward Van den Brande on . Posted in Brazil, VAT News.

VAT News – Brazil

Brazil is transitioning to an alphanumeric CNPJ (company tax ID) to address capacity limits in the current 14-digit numeric format. This change impacts all major electronic fiscal systems -NF-e, NFC-e, and CT-e – which rely on the CNPJ for validation, XML schema, barcodes, and QR codes.
Businesses must update schemas, validation rules, ERP/POS systems, and barcode logic to support the new format.

Although no official deadline has been set, the tax administration has begun preparations, and a transition period is expected where both numeric and alphanumeric CNPJs will be valid.

Increase of standard VAT rate Estonia

Written by Ward Van den Brande on . Posted in Estonia, VAT News.

VAT News – Estonia

Estonia will increase its standard VAT rate from 22% to 24% effective 01.07.2025, under the Security Tax Act, to generate additional revenue for security-related expenditures. Although initially intended as a temporary measure until the end of 2028, the Ministry of Finance has drafted an amendment to make the 24% VAT rate permanent.

2026 Tax Reform Package

Written by Ward Van den Brande on . Posted in Japan, VAT News.

VAT News – Japan

Japan is considering removing the JPY 10,000 de minimis threshold for Consumption Tax and possibly customs duties on low-value imports as part of its 2026 Tax Reform Package.

Currently, online consumer purchases under this amount are exempt from the 10% Consumption Tax, giving foreign e-commerce sellers (a competitive edge over domestic retailers).

Import VAT postponement scheme

Written by Ward Van den Brande on . Posted in Slovakia, VAT News.

VAT News – Slovakia

On 17.05.2024, Slovakia published Act 102/2024 Coll., amending the VAT Act to introduce an import VAT postponement scheme effective from 01.07.2025.

Slovak VAT-registered businesses with an Advanced Economic Operator (AEO) license can account for import VAT in their VAT return instead of paying it at customs, improving cash flow and simplifying compliance.
From 01.01.2026, EU-established businesses meeting the same criteria will also qualify.

Eligibility requires a Slovak VAT ID, customs declaration, AEO license, and use of goods for taxable business activity.
A new VAT return format will reflect these changes and 2025 VAT rate adjustments.

Flag Argentina

Tax Reform Argentina – Super-VAT

Written by Ward Van den Brande on . Posted in Argentina, VAT News.

VAT News – Argentina

Argentina’s Economy Minister, Luis Caputo, has proposed to introduce a comprehensive tax reform initiative known as the “super-VAT.”
This proposal aims to streamline the country’s complex tax system by consolidating multiple levies, including the national Value Added Tax (VAT), provincial Gross Income Tax (IIBB), and certain municipal taxes, into a unified sales tax.

Under the proposed system, the national government would impose a base VAT rate of 9%, while allowing individual provinces to set additional rates tailored to their fiscal needs. This approach is designed to foster tax competition among provinces, potentially leading to more efficient public spending and reduced tax burdens for citizens.
However, it also raises concerns about potential disparities in tax rates across regions and the impact on provincial revenues.

Atomium | Belgium

Belgium’s Circular 2025/C/23 – Right to deduct

Written by Ward Van den Brande on . Posted in Belgium, VAT News.

VAT News – Belgium

Belgium’s Circular 2025/C/23 implements European case law on the late exercise of VAT deduction rights, particularly following the Volkswagen AG and Biosafe rulings. These judgments clarified that VAT deduction cannot be denied solely for being late if the taxpayer was objectively unable to exercise the right within the standard limitation period.

In Belgium, this period is three years after the end of the calendar year in which the VAT became chargeable. While the circular acknowledges this case law, it applies it rigidly. VAT may only be deducted in the period when the corrective document is received and only under strict cumulative conditions and only if the supplier has paid the additional VAT. The right is limited to the additional VAT due under a corrected invoice; any originally invoiced VAT remains subject to the standard limitation.

The circular furthermore introduces additional reporting obligations. Taxpayers invoking the Biosafe exception must inform the tax authority in advance and clearly reference the circular in their VAT return. Details such as the deductible amount, corrective document number, and applicable VAT boxes (81–83 and/or 62) must be provided. A limited tolerance is allowed for documents received just before the limitation period expires, if timely declared.