Global TaxScapes: Quarterly Global Tax & Compliance Updates
Period: October 1, 2025 – December 16, 2025
Global tax compliance continues to evolve quickly – with new mandates being introduced at a breakneck pace – and existing dates, forms, and processes being updated daily. As governments and tax authorities worldwide continue to push more aggressively for real-time data, it’s essential that businesses keep abreast of changes to avoid audits, financial penalties and interruption of service to their businesses across all jurisdictions in which they operate.
Global TaxScapes powered by Sovos provides businesses with an in-depth guide to all the major changes taking place across the tax compliance and regulatory space each quarter. This information will better prepare your organization to manage and execute upcoming changes. As the world of tax compliance continues to grow more complex, you can count on Sovos to ensure that you always have the most timely and accurate information available.
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Key Global Tax & Compliance Trends This Quarter
Q4 2025 marked a pivotal quarter for global tax digitalization, with the European Union’s VAT in the Digital Age (ViDA) directive driving widespread e-invoicing mandate announcements across EMEA. Belgium launched its B2B e-invoicing requirement effective January 1, 2026, while Poland finalized KSeF 2.0 implementation for February 2026. Notably, the United Kingdom announced mandatory e-invoicing for April 2029, and multiple EU member states—including Hungary, Slovakia, and Slovenia—advanced their own e-invoicing frameworks.
In the United States, significant updates emerged in information reporting, with IRS penalty relief for new OBBBA tips and overtime reporting requirements, and states like Kansas and Maine releasing 1099-DA specifications for digital asset transactions. Sales and use tax changes included Illinois’s grocery tax repeal, Maryland’s digital services tax expansion, and Washington’s custom software taxation.
Regional Tax Regulatory Updates
| Region | Updates | Countries | Primary Focus Areas |
| EMEA | 20 | 17 | E-invoicing mandates, ViDA implementation, VAT rate changes |
| APAC | 8 | 8 | E-invoicing rollouts, digital services VAT, validation rules |
| LATAM | 13 | 3 | E-transport requirements, receipt transitions, implementation delays |
| US | 17 | 12 states + Federal | IRIS transition, 1099-DA specifications, grocery/digital services taxes |
| TOTALS | 48 | 40+ | - |
Europe
Belgium
Belgium published updated draft law for B2B e-invoicing mandate with key scope clarifications. Tax administration implemented conditional administrative tolerance for three months, providing penalty relief for companies demonstrating timely technical preparation efforts but still facing challenges.
Key Dates: Effective January 1, 2026; Tolerance period through March 31, 2026
Impact: Taxpayers established in Belgium conducting VAT-taxable domestic B2B transactions.
Poland
Ministry of Finance released KSeF 2.0 token generation in MCU environment, KSeF 2.0 Pre-production Taxpayer Application, new draft Regulation on KSeF Usage, regulation on exemptions, and amendment to invoice issuance regulation. Mandatory KSeF number reporting in JPK_VAT required from launch date.
Key Dates: Mandatory e-invoicing effective February 1, 2026; Token generation available December 10, 2025
Impact: VAT-registered taxpayers with registered office or fixed establishment in Poland
Spain
Spanish Government announced further one-year postponement of VERI*FACTU certified billing system deadlines via Royal Decree-Law.
Key Dates: Corporate Income Tax taxpayers: January 1, 2027; IRPF taxpayers: July 1, 2027 (postponed from 2026)
Impact: All taxpayers required to use certified billing software
Source: Sovos Regulatory Analysis
United Kingdom
UK government announced plans to introduce mandatory electronic invoicing for all B2B and B2G transactions, outlined in Budget 2025 proposal.
Key Dates: Effective April 2029 (subject to Parliamentary approval)
Impact: All businesses conducting B2B and B2G transactions in the UK
Source: Sovos Regulatory Analysis
Hungary
Hungarian National Tax and Customs Administration (NAV) launched public consultation on implementing EU’s ViDA package for mandatory e-invoicing and real-time reporting.
Key Dates: Consultation period through January 20, 2026
Impact: All VAT-registered businesses in Hungary
Source: Sovos Regulatory Analysis
Slovakia
Parliament approved draft law introducing mandatory e-invoicing and real-time reporting aligned with ViDA. Insurance Premium Tax rate increased from 8% to 10%. Temporary tax amnesty introduced.
Key Dates: Domestic B2B e-invoicing: January 1, 2027; Cross-border: July 1, 2030; IPT increase: January 1, 2026
Impact: All VAT-registered taxpayers, insurance providers
Source: Sovos Regulatory Analysis
Slovenia
National Assembly enacted e-Invoicing Law establishing mandatory B2B e-invoicing.
Key Dates: Effective January 2028 (postponed from June 2026)
Impact: All B2B transactions in Slovenia
Source: Sovos Regulatory Analysis
Germany
Ministry of Finance published updated FAQs and follow-up guidelines on B2B e-invoicing mandate, clarifying scope, technical requirements, and archiving obligations.
Key Dates: E-invoicing mandate effective since January 2025
Impact: All entities established in Germany conducting domestic B2B transactions
Source: Sovos Regulatory Analysis
Portugal
Parliament approved 2026 State Budget confirming postponement of qualified electronic signature requirement for e-invoice integrity/authenticity.
Key Dates: E-signature requirement postponed to January 1, 2027 (from January 1, 2026)
Impact: All e-invoice issuers in Portugal
Source: Sovos Regulatory Analysis
Ireland
Finance Minister announced phased rollout of domestic B2B e-invoicing mandate. Insurance Compensation Fund levy reduced from 2% to 1%.
Key Dates: E-invoicing: Phased implementation TBD; ICF levy reduction: January 1, 2026
Impact: All domestic B2B transactions, insurance providers
Source: Sovos Regulatory Analysis
France
Draft State Budget Law for 2026 introduces amendments to e-invoicing and e-reporting mandate regulations, with clarifications on transactions subject to e-reporting.
Key Dates: E-invoicing/e-reporting mandate phases ongoing
Impact: All VAT-registered businesses in France
Source: Sovos Regulatory Analysis
Greece
Phase 2 of e-transport mandate postponed, with mandatory compliance now beginning May 1, 2026.
Key Dates: Optional period: December 2025 – April 2026; Mandatory: May 1, 2026 (postponed from December 1, 2025
Impact: Businesses involved in transport of goods
Source: Sovos Regulatory Analysis
Malta
Malta Tax and Customs Administration preparing to implement e-invoicing and real-time reporting as part of digital transformation strategy aligned with ViDA.
Key Dates: Implementation timeline TBD
Impact: Invoice issuers in Malta
Source: Sovos Regulatory Analysis
Bosnia and Herzegovina
Government of the Federation adopted Draft Law on Fiscalization introducing e-invoicing and mandatory real-time reporting to Tax Administration.
Key Dates: Sent to parliamentary procedure; effective date TBD
Impact: All transactions in Federation of Bosnia and Herzegovina
Source: Sovos Regulatory Analysis
Tunisia
2026 Finance Bill proposes expansion of mandatory e-invoicing to include service transactions.
Key Dates: Effective January 1, 2026 (if approved)
Impact: Service transactions in addition to existing B2G and pharmaceutical/fuel transactions
Source: Sovos Regulatory Analysis
Turkey
Revenue Administration extended deadline for pharmaceutical and medical device e-invoicing technical guide requirements.
Key Dates: Extended to December 1, 2025 (from October 1, 2025)
Impact: Pharmaceutical and medical device suppliers
Source: Sovos Regulatory Analysis
Russia
VAT rate increased from 20% to 22% following presidential signature of Law No. 425-F3.
Key Dates: Effective January 1, 2026
Impact: All VAT-registered businesses in Russia
Source: Sovos Regulatory Analysis
Asia Pacific, Middle East and Africa
Oman
Tax Authority released first e-invoicing data dictionary for Fawtara system and published service provider accreditation criteria. 5-corner model confirmed for implementation.
Key Dates: Pilot phase ongoing with 100 selected companies; full rollout TBD
Impact: All taxpayers, service providers seeking accreditation
Source: Sovos Regulatory Analysis
United Arab Emirates
Ministry of Finance released ministerial decisions establishing regulatory framework and specific deadlines for Electronic Invoicing System with phased rollout.
Key Dates: Phased implementation beginning 2026
Impact: All businesses conducting taxable transactions in UAE
Source: Sovos Regulatory Analysis
Saudi Arabia
ZATCA announced criteria for 24th wave of taxpayers required to comply with Phase 2 of e-invoicing mandate, covering taxpayers with annual VAT revenues between SAR 375,000 and SAR 750,000.
Key Dates: Wave 24 implementation ongoing
Impact: Taxpayers with annual VAT revenues SAR 375,000–750,000 in 2022 or 2023
Source: Sovos Regulatory Analysis
Malaysia
Inland Revenue Board announced updates to e-invoicing rules introducing stricter field validations for date fields and supplier bank account numbers.
Key Dates: Effective immediately
Impact: All e-invoice issuers in Malaysia
Source: Sovos Regulatory Analysis
Philippines
Bureau of Internal Revenue extended deadline for mandatory structured e-invoice issuance.
Key Dates: Extended to December 31, 2026
Impact: Taxpayers required to issue structured e-invoices
Source: Sovos Regulatory Analysis
Pakistan
Federal Board of Revenue issued new notification further postponing mandatory e-invoicing implementation schedule by approximately two months.
Key Dates: Revised timeline per S.R.O. 1852 (I)/2025
Impact: Businesses subject to e-invoicing requirements
Source: Sovos Regulatory Analysis
Sri Lanka
Implementation of 18% VAT on non-resident sales of digital services delayed.
Key Dates: Delayed to April 1, 2026 (from October 1, 2025)
Impact: Non-resident digital service providers
Source: Sovos Regulatory Analysis
Angola
General Tax Administration announced revised timeline for e-invoicing implementation due to technical challenges during rollout preparation.
Key Dates: Originally scheduled September 2025; revised date TBD
Impact: All taxpayers subject to e-invoicing mandate
Source: Sovos Regulatory Analysis
Latin America
Brazil
Brazil published Joint Act RFB/CGIBS No. 1/2025, clarifying the use of existing electronic tax documents to support IBS and CBS during the initial phase of the Tax Reform. The act confirms that current DF-e models remain valid and establishes transitional rules suspending penalties related to missing IBS and CBS fields during the preparation period.
Key Dates: Effective January 1, 2026; Penalty grace period applies during the initial phase of the Tax Reform, with enforcement only possible after the fourth month following publication of IBS/CBS regulations
Impact: All businesses subject to IBS and/or CBS issuing electronic tax documents for goods and services, including import and export operations
Source: Sovos Regulatory Analysis
Chile
Tax Authority established new requirements for invoices and electronic transport documents covering transfer of movable tangible goods (Resolution 154), improving traceability and tax control.
Key Dates: Effective May 1, 2026
Impact: Businesses transferring tangible property subject to VAT
Source: Sovos Regulatory Analysis
Dominican Republic
Tax Authority announced expiration of type “B” non-electronic tax receipt sequences for Grand National taxpayers.
Key Dates: Non-electronic receipts expire December 31, 2025
Impact: Large National taxpayers; non-electronic receipts limited to contingency use only
Source: Sovos Regulatory Analysis
United States - Sales & Use Tax Changes
Illinois
State repeals 1% grocery tax on food for human consumption. Municipalities and counties may impose their own 1% grocery tax. PaintCare Recovery Program implemented with fees on architectural paint.
Key Dates: Grocery tax repeal: January 1, 2026; PaintCare: December 1, 2025
Impact: Food retailers, paint sellers; exemption excludes alcohol, cannabis products, candy, prepared foods
Source: Sovos Regulatory Analysis
Colorado
Legislation HB 1154 replaces 0.1% Telecom Relay Surcharge on prepaid wireless with Prepaid Disability Access Fee at $0.08 rate.
Key Dates: Effective January 1, 2026
Impact: Prepaid wireless service providers
Source: Sovos Regulatory Analysis
Hawaii
Annual motor vehicle rental surcharge increased from $7.00 to $7.50 per day as part of scheduled annual increases.
Key Dates: Effective January 1, 2026
Impact: Motor vehicle rental businesses
Source: Sovos Regulatory Analysis
Maryland
Tire Recycling Fee increased from $0.80 to $1.00 per tire. New $5 fee imposed on sale of new tires as part of vehicles, trailers, and farm equipment.
Key Dates: Effective January 1, 2026
Impact: Tire sellers, vehicle dealers
Source: Sovos Regulatory Analysis
Washington
State expanded definition of retail sales to include custom software and several newly taxable services per ESSB 5814.
Key Dates: Effective October 1, 2025
Impact: Custom software providers, newly taxable service providers
Source: Sovos Regulatory Analysis
Alaska (Local)
Juneau adopted exemptions for essential foods and essential residential utilities. Haines Borough enacted seasonal non-prepared food exemption from October 1 through March 31.
Key Dates: Juneau: November 20, 2025; Haines Borough: January 1, 2026
Impact: Food retailers, utility providers in respective jurisdictions
Source: Sovos Regulatory Analysis
United States - Information Reporting
Federal (IRS / SSA)
IRS Notice 2025-62
Transitional penalty relief for tax year 2025 regarding new OBBBA requirements for separate reporting of qualified tips and qualified overtime compensation on Forms W-2, 1099-MISC, 1099-NEC, and other returns.
Key Dates: Tax year 2025 reporting
Source: Sovos Regulatory Analysis
Publication 5718 Update
IRS released updated specifications for IRIS A2A electronic filing. Form 1099-H removed; Forms 1042-S, 1099-DA, and 5498-QA added. CF/SF Program revised with Oregon added and Missouri removed.
Key Dates: Tax year 2025 reporting
Source: Sovos Regulatory Analysis
Publication 1220 Update
IRS announced FIRE system retirement beginning Tax Year 2026/Filing Season 2027, with transition to IRIS XML format.
Key Dates: FIRE retirement: Filing Season 2027
Source: Sovos Regulatory Analysis
Forms 1094/1095 Instructions
IRS released 2025 instructions for Forms 1094-B, 1095-B, 1094-C, and 1095-C with expanded Alternative Furnishing Method made permanent.
Key Dates: Tax year 2025 reporting
Source: Sovos Regulatory Analysis
Form 1099-R Updates
IRS issued updates modifying reporting requirements, including new requirement for annuity issuers to report year-end actuarial values in box 8.
Key Dates: Tax year 2025
Source: Sovos Regulatory Analysis
State / Local
Kansas
Released K-99CSV specifications with custom 1099-DA format for digital asset transactions—first state to post such specifications for tax year 2025.
Source: Sovos Regulatory Analysis
Maine
Finalized electronic file specifications for tax year 2025 W-2 and 1099 returns. Will conform to IRIS XML format for Form 1099s beginning tax year 2026.
Source: Sovos Regulatory Analysis
New Mexico
House Bill 218 introduces withholding tax reporting changes including quarterly reporting expansion for all employers, increased penalties, and new extension provisions.
Key Dates: Effective January 1, 2026
Source: Sovos Regulatory Analysis
Arkansas
Released tax year 2025 W-2/1099 electronic file specifications. Mandatory e-filing threshold for W-2s decreased from 125 to 75 employees. Due date shifted from January 31 to February 28.
Source: Sovos Regulatory Analysis
Iowa
Announced exception for 1099-DA filing requirements—will not require state filing of Form 1099-DA for digital asset transactions.
Source: Sovos Regulatory Analysis
Report Metadata
Generated: December 16, 2025 | Source: Sovos Regulatory Analysis FeedPeriod: Q4 2025 (October 1 – December 16, 2025) | Total Updates: 48
Regions: EMEA, APAC, LATAM, US | Report Version: 1.0.0