Regulatory Analysis
Pursuant to the Council of Ministers Decree No. 337/2025 published on November 21, 2025, Cyprus is extending the zero VAT rate on essential items including baby milk, baby and adult diapers, female hygiene products, fresh or chilled vegetables, and fresh fruits until December 31, 2026. The temporary zero-rate on essential items was previously set to […]
Ghana is enacting multiple changes to move the effective Value Added Tax (VAT) rate from 21.9% to 20%, starting January 1, 2026. Ghana is modifying its’ treatment of the National Health Insurance Levy and Ghanian Education Trust Fund Levy. Levy amounts paid on purchases will be deductible in the same manner as regular VAT payments […]
Slovakia is subjecting confectionary goods to the standard Value Added Tax (VAT) rate, beginning January 1, 2026. The reduction includes candy, ice cream, sugary drinks, and certain baked goods.
Chicago will reduce its Motor Vehicle Lessor Tax from $2.75 per rental period to $0.50 per rental period. This tax is imposed on the lease of motor vehicles within Chicago on a daily or weekly basis and is charged per the rental period in the lease agreement. This change is effective on January 1, 2026. […]
Beginning January 1, 2026, Chicago will impose a new retail liquor tax of 1.5% on the sale of alcoholic beverages purchased for consumption off the premises where the alcohol was purchased. Further changes can be found here.
On January 1, 2026, the Ministry of Finance made the invoice submission module with attachment functionality available through the e-Tax Office, allowing taxpayers to register their intention to issue invoices with attachments in KSeF 2.0. Process for the issuance of Invoices with Attachments To issue invoices with attachments in KSeF 2.0, taxpayers must first submit […]
Romania’s Government Emergency Ordinance 89/2025, published on December 23, 2025, introduces important clarifications to the country’s e-invoicing mandate without creating new obligations for taxpayers currently in scope of the mandate. The ordinance primarily addresses gaps in existing legislation and standardizes transmission deadlines across B2B and B2C transactions. Key changes 5 working day transmission deadline Previously, […]
The New Mexico Taxation and Revenue Department has released FYI-330, updating guidance on income and withholding information returns and filing methods. Beginning January 1, 2026, all employers must submit annual income and withholding statements (Forms W-2, W-2G, and 1099-R) electronically, regardless of employee count. Filers should note that the Department no longer requires notification that a […]
The IRS has updated Form 8809, used to request filing extensions for information returns including Forms W-2, 1099, 1042-S, and 1095. The most notable update is the addition of the Information Return Intake System (IRIS) as a filing option for automatic 30-day extensions. IRIS will fully replace the FIRE system in January 2027. The IRS […]
The IRS has released Publication 4163 (Rev. 12-2025) for Modernized e-File (MeF) business returns processed in 2026. This publication outlines electronic filing requirements and guidance for returns filed through the IRS Modernized e-File (MeF) platform. There were several key changes in this recent update to the publication, which include the following: Puerto Rico form discontinuation: […]
Effective January 1, 2026, the state level discount available for timely filed sales and use tax returns in Colorado has been removed. This discount is termed as a “service fee” in Colorado. Please note, this change does not impact local level service fees in Colorado. This change is included in the Colorado Department of Revenue’s […]
Effective January 1, 2026, the Colorado Waste Tire Fee on the sale of new motor vehicle and trailer tires will increase to $2.00 from $0.50.
Earlier this year the Washington state legislature enacted Engrossed Substitute Senate Bill 5801 (Chapter 417, Laws of 2025) changing a number of taxes and fees related to motor vehicles and other forms of transportation. As part of this law the additional 5.9% sales tax imposed on retail car rentals of 30 days or less will […]
The California State Controller’s Office (SCO) has issued a warning about a phishing scam targeting unclaimed property holders. Fraudulent emails impersonating Controller Malia M. Cohen are requesting sensitive reporting data, including NAUPA files, UFS-1 forms, and property owner personally identifiable information (PII). Sovos clients should be vigilant and know how to recognize these scams. What the Scam Looks […]
The Colorado Department of Revenue published local sales and use tax changes effective January 1, 2026. Changes include rate increases and newly imposed sales taxes in jurisdictions such as Pagosa Springs. More information concerning the January 1, 2026 local changes may be found here.
The French Tax Authority (DGFIP) has released detailed guidance on the upcoming pilot phase for the French CTC reform, marking a significant milestone in the country’s transition to mandatory electronic invoicing. This pilot represents the first real testing of the CTC ecosystem before the phased mandatory rollout beginning September 2026. Pilot Phase Overview The pilot […]
The Hawaii Department of Taxation has released the 2026 edition of Booklet A, Employer’s Tax Guide, with income tax withholding rates, methods, and tax tables effective as of December 5, 2025 for withholding on wages paid January 1, 2026 and thereafter. Effective January 1, 2026, Hawaii will adopt the 10 or more electronic filing threshold […]
Revenu Québec has released the 2025 Guide to Filing the RL-1 Slip (RL-1.G-V) for reporting employment and other income. The guide covers tax year 2025 and accounts for legislative changes through October 31, 2025. The most significant changes for 2025 relate to security option reporting following the federal announcement deferring the increase to the capital […]