TaxScapes Webinar Q1 2026: Regulatory Changes in the Last 90 Days
Wednesday, April 15, 2026 | 11:00 AM Eastern Daylight Time | 1 Hour
Global TaxScapes: Quarterly Global Tax & Compliance Updates
Period: January 1, 2026 – March 31, 2026
What is Sovos TaxScapes?
Q1 2026 was defined by the activation of previously announced mandates, accelerating ViDA transposition across Europe, and significant e-invoicing progress across Middle East & Africa and LATAM.
In Europe, France launched its CTC pilot phase in late February using real business data through accredited platforms, with mandatory rollout from September 2026. Poland’s KSeF 2.0 went live February 1 for the largest taxpayers. Greece moved its large-business B2B e-invoicing start to March 2 with full coverage by October 2026. Spain adopted the Royal Decree mandating domestic B2B e-invoicing, with estimated go-live dates of July 2027 and July 2028. Belgium’s B2B mandate took effect January 1. Romania clarified unified transmission deadlines and expanded RO e-Factura scope. Norway accelerated its mandatory e-invoice issuance deadline to January 2027 — one year earlier than planned. Hungary published its ViDA conceptual framework, signaling a full structural shift to EN 16931-based XML invoicing. Denmark confirmed OIOUBL 2.1 will be retired in favor of NemHandel BIS 4 from 2028. VAT rate changes took effect in Lithuania, Slovakia, Cyprus, and Sweden.
In Middle East & Africa, the UAE published the first operational guidance for its Electronic Invoicing System. Oman launched the Fawtara accreditation portal with Phase 1 mandatory rollout scheduled for August 2026. Saudi Arabia continued its Phase 2 wave rollout. Nigeria, Togo, and Tunisia advanced mandates; The Gambia proposed one. In APAC, Malaysia updated its e-invoice specific guidelines and Singapore confirmed the InvoiceNow progressive expansion to all GST-registered businesses by 2031. In LATAM, Brazil consolidated four tax reform milestones covering IBS/CBS e-invoicing, the IBS Management Committee, split payment integration, and federal incentive reductions. Chile, Peru, Mexico, and the Dominican Republic each recorded discrete updates.
In the US, the IRS released the 2026 W-2, Form 4547 for Trump Accounts, updated Form 1098, and three 1099-DA updates making cost-basis reporting mandatory for tax year 2026. State and local highlights include Illinois eliminating its 200-transaction nexus threshold, Chicago’s three local tax changes, Ohio cancelling its expanded sales tax holiday, Rhode Island taxing online database access, and Texas repealing its R&D equipment exemption.
Regional Tax Regulatory Updates
| Region | Updates | Countries | Primary Focus Areas |
| Europe | 152 | 15 | ViDA transposition, e-invoicing go-lives and mandate adoptions, VAT rate changes, insurance tax, e-accounting, format transitions |
| Middle East & Africa | 8 | 8 | E-invoicing platform launches, mandate expansion, Finance Law changes |
| APAC | 2 | 2 | E-invoicing guidelines update, GST InvoiceNow expansion |
| LATAM | 7 | 5 | Tax reform, CFDI updates, e-invoicing contingency, SIRE postponement |
| US | 19 | Federal + 8 states/localities | W-2/1099 changes, digital asset reporting, SUT nexus, withholding, local tax |
| TOTALS | 188 | 31+ | - |
Indirect Tax Suite Regulatory Changes
Europe
France
Three significant Q1 2026 developments: (1) The 2026 State Budget Law was formally adopted on February 2, 2026, codifying key amendments to the B2B e-invoicing and e-reporting mandate, legally confirming the target timelines, terminology, responsibilities, and enforcement framework of its e-invoicing and e-reporting system. (2) The French Tax Authority (DGFIP) launched the CTC reform pilot phase in late February 2026, running through August 31, 2026, using exclusively real business data; only accredited Plateformes Agréées (PAs) that have completed end-to-end testing with the Public Portal (PPF) may participate. (3) AFNOR, France’s national standardization body, released in February version 1.3 of the 3 XP technical standards applicable to e-invoicing and e-reporting, expected to take effect in June 2026, three months ahead of the September 2026 mandate go-live.
Key Dates: Budget Law effective February 2, 2026; e-invoicing/e-reporting pilot: late February – August 2026; mandatory rollout from September 2026; Technical standards v.1.3 applicable from June 1, 2026
Impact: VAT-registered businesses in France; accredited platform providers (PAs); insurers and supplementary health insurance providers
Sources: 2026 Budget Law — E-Invoicing Amendments | CTC Pilot Phase Guidance | Exceptional TSA on Health Insurance
Belgium
Two updates effective Q1 2026: (1) The B2B e-invoicing mandate is in force effective January 1, 2026, with a three-month administrative tolerance period through March 31, 2026 for companies demonstrating timely technical preparation. (2) Proposed VAT rate changes for takeaway meals and sports and cultural events — expected to take effect March 1, 2026 — were withdrawn following a critical opinion by Belgium’s Council of State.
Key Dates: B2B e-invoicing mandate: effective January 1, 2026; administrative tolerance through March 31, 2026; proposed VAT rate changes withdrawn
Impact: VAT-registered businesses conducting domestic B2B transactions in Belgium; takeaway food and events sectors
Cyprus
Pursuant to Council of Ministers Decree No. 337/2025, Cyprus extended the zero VAT rate on essential items — including baby milk, baby and adult diapers, female hygiene products, and fresh vegetables and fruits — until December 31, 2026.
Key Dates: Effective January 1, 2026 through December 31, 2026
Impact: Retailers and consumers of essential goods in Cyprus
Source: Sovos Regulatory Analysis
Denmark
The Danish Business Authority indicated that the national e-invoice format OIOUBL 2.1 will be gradually phased out and replaced by NemHandel BIS 4 — a Danish adaptation of the international Peppol BIS 4 standard. Information surfaced on February 24, 2026 following the cancellation of the planned OIOUBL 3 standard, the result of a year-long analysis by the Danish Business Authority. The transition is designed to align Denmark’s e-invoicing framework with the European Norm standard EN 16931 and to support upcoming ViDA requirements. It remains unclear how this change will affect requirements under the Danish Digital Bookkeeping Act, which currently requires standard bookkeeping system providers to support issuance and receipt in OIOUBL format.
Key Dates: Phased migration from OIOUBL 2.1 to NemHandel BIS 4 expected 2028 through mid-2029; initial NemHandel BIS 4 release: 2028; final release and OIOUBL 2.1 phase-out: mid-2029; granular timelines TBD
Impact: Businesses and service providers currently relying on OIOUBL 2.1; digital bookkeeping system providers with OIOUBL format obligations; all companies subject to Danish e-invoicing requirements
Greece
The Greek Ministry of National Economy & Finance and AADE jointly moved the mandatory B2B e-invoicing go-live for large businesses (>€1M gross revenue in 2023) from February 2 to March 2, 2026, with a gradual implementation window through May 3, 2026. Penalties apply from May 3, 2026. Phase 2, covering all remaining resident taxpayers, commences October 1, 2026.
Key Dates: Phase 1 mandatory start: March 2, 2026 (postponed from February 2); transition window through May 3, 2026; Phase 2: October 1, 2026
Impact: Large businesses (>€1M 2023 gross revenue) in Greece; all remaining resident taxpayers from October 2026
Source: Sovos Regulatory Analysis
Hungary
NTCA/NAV published a post-consultation conceptual framework for ViDA implementation in March 2026. While not a final regulatory position, it signals a fundamental transformation of Hungary’s invoicing landscape. Mandatory e-invoicing will apply to domestic B2B, cross-border EU B2B, and B2G transactions; paper invoices remain permissible for B2C and non-EU transactions only. Hungary will adopt a data-based model using EN 16931-compliant XML with Hungarian extensions — hybrid formats will not be accepted and XML is the legally authoritative version. The five-corner Peppol model is planned for transmission (optional for businesses); all invoicing software will require NTCA accreditation; and buyer-side data reporting within 5 days of receipt is envisaged. The document is explicitly flagged as subject to revision.
Key Dates: Conceptual framework published March 2026; final regulatory position and implementation timeline TBD; EU ViDA package applies from 2028
Impact: All VAT-registered businesses issuing domestic B2B, cross-border EU B2B, and B2G invoices in Hungary; invoicing software providers requiring NTCA accreditation; ERP and accounting system providers
Source: Sovos Regulatory Analysis
Ireland
Irish Revenue issued a press release clarifying which businesses will be considered “large corporates” for inclusion in Phase 1 of Ireland’s VAT Modernisation programme. Mandatory e-invoicing and B2B invoice data reporting by large corporates is scheduled to commence in November 2028.
Key Dates: Phase 1 mandatory e-invoicing: November 2028
Impact: Large corporate VAT-registered businesses in Ireland
Source: Sovos Regulatory Analysis
Italy
The Italian Parliament gave final approval to the 2026 Budget Law (Law No. 199, published December 30, 2025), effective January 1, 2026. The law introduces significant changes affecting insurers writing motor and vessel business in Italy, including amendments to Insurance Premium Tax obligations for these business classes.
Key Dates: Effective January 1, 2026
Impact: Insurers writing motor and vessel business in Italy; non-resident insurers under freedom of services
Source: Sovos Regulatory Analysis
Lithuania
Lithuania removed the 9% reduced VAT rate category effective January 1, 2026, under Law XV-287 amending Article 19 of the VAT Law. Three categories previously subject to 9% — passenger services, accommodation services, and a third category — are now subject to 12%.
Key Dates: Effective January 1, 2026
Impact: Businesses providing passenger services, accommodation services, and other formerly 9%-rated supplies in Lithuania
Source: Sovos Regulatory Analysis
Norway
Norway’s Ministry of Finance announced on March 16, 2026 that it will shortly present a bill to parliament proposing mandatory B2B e-invoicing and digital bookkeeping. The mandatory e-invoice issuance deadline has been brought forward by one year to January 1, 2027 (from 2028), citing Norway’s high digital maturity. Mandatory e-invoice receipt and digital bookkeeping follow from January 1, 2030. Scope is B2B only at launch; businesses below NOK 50,000 annual turnover are exempt. The Norwegian Tax Administration has been tasked with investigating future scope expansion to B2C and e-receipts, with findings due December 2026.
Key Dates: Bill to be presented to parliament in near future; mandatory e-invoice issuance: January 1, 2027 (accelerated from January 1, 2028); mandatory digital bookkeeping and e-invoice receipt: January 1, 2030; implementing regulations to follow parliamentary approval; scope expansion investigation due: December 2026.
Impact: All businesses subject to Norwegian bookkeeping obligations, including limited companies, state-owned enterprises, financial institutions, investment funds, cooperatives, foundations, and sole traders; businesses below NOK 50,000 turnover threshold exempt; B2C transactions out of initial scope.
Source: Sovos Regulatory Analysis
Poland
Four updates across KSeF and e-accounting in Q1 2026: (1) On January 1, 2026, the Ministry of Finance launched the invoice attachment module in the e-Tax Office, allowing taxpayers to register for issuing invoices with attachments in KSeF 2.0. (2) On January 30, 2026, the Ministry published tax guidelines clarifying Fixed Establishment (FE) rules for KSeF invoicing obligations, confirming the requirements that taxpayers with a fixed establishment in Poland must fulfill to become obliged to issue structured invoices through KSeF. (3) Mandatory KSeF 2.0 e-invoicing became effective February 1, 2026 for the largest taxpayers in scope with mandatory KSeF number or specific markers reporting in JPK_VAT required from launch. (4) The regulation extending JPK_KR_PD (electronic accounting books) submission deadlines entered into force February 20, 2026; for standard CIT filers, the new deadline is the end of the seventh month after the financial year-end.
Key Dates: KSeF attachment module: January 1, 2026; FE guidelines: January 30, 2026; mandatory KSeF B2B e-invoicing: February 1, 2026; JPK_KR_PD extended deadlines: February 20, 2026
Impact: VAT-registered taxpayers with registered office or fixed establishment in Poland; foreign businesses assessing KSeF scope; corporate CIT taxpayers subject to JPK_KR_PD
Source: KSeF Invoice Attachment Module | KSeF Fixed Establishment Guidelines | KSeF 2.0 Go-Live Key Dates | JPK_KR_PD Extended Deadlines
Romania
Government Emergency Ordinance 89/2025 introduced clarifications to Romania’s RO e-Factura system, effective January 1, 2026. A unified 5 working-day transmission deadline (replacing the prior 5 calendar-day B2B requirement) was established for both B2B and B2C invoices. Domestic B2B invoices issued to non-established but VAT-registered buyers must be transmitted through RO e-Factura, with suppliers continuing to deliver invoices through traditional channels. Individual entrepreneurs identified by CNP must register in the RO e-Invoice Register before commencing economic activities.
Key Dates: Effective January 1, 2026; CNP individual registration transition period through June 1, 2026
Impact: All Romanian-established taxpayers; non-established VAT-registered buyers; individual entrepreneurs (CNP)
Source: Sovos Regulatory Analysis
Slovakia
Slovakia is subjecting confectionery goods — including candy, ice cream, sugary drinks, and certain baked goods — to the standard VAT rate, effective January 1, 2026. These goods were previously taxed at a reduced rate.
Key Dates: Effective January 1, 2026
Impact: Manufacturers, distributors, and retailers of confectionery goods in Slovakia
Source: Sovos Regulatory Analysis
Spain
Two updates in Q1 2026: (1) Royal Decree-Law 16/2025 introduced an extraordinary period for taxpayers to exit voluntary SII (Suministro Inmediato de Información) participation, following the December 2025 postponement of VERI*FACTU deadlines. The measure addresses businesses that opted into SII specifically to obtain exemption from VERI*FACTU requirements.
(2) Council of Ministers adopted the Royal Decree for mandating electronic invoicing for domestic B2B transactions between companies and professionals.
Key Dates: (1) Extraordinary renunciation window: January 2026 per Royal Decree-Law 16/2025;
(2) Estimated mandatory e-invoicing go-live July 2027 and July 2028, depending on the adoption of a forthcoming Ministerial Order.
Impact: (1) Businesses voluntarily participating in SII that entered the system to obtain a VERI*FACTU exemption
(2) Companies must switch to structured e-invoices and electronically report invoice statuses. These should assess the best e-invoicing exchange method – whether through private platforms, the tax authority’s portal, or a hybrid approach.
Source:
(1) Spain: Additional Window for SII Renunciation Following VERI*FACTU Postponement | Sovos
(2) Spain Adopts Mandatory B2B E-Invoicing Royal Decree | Sovos
Sweden
Two updates in Q1 2026: (1) The Swedish Government issued committee directive Dir. 2026:9, commissioning a special investigator to assess how ViDA rules should be transposed into Swedish national law, with findings to be presented to the government following the investigation period. (2) Beginning April 1, 2026, Sweden will temporarily reduce its VAT rate on food to 6%, in effect until December 31, 2027.
Key Dates: ViDA investigation directive: February 2026; temporary food VAT reduction: April 1, 2026 – December 31, 2027
Impact: All VAT-registered businesses in Sweden; food sector operators; platform economy operators
Asia Pacific, Middle East and Africa
United Arab Emirates
The UAE Ministry of Finance published three documents on February 23, 2026 providing the first comprehensive operational guidance for the country’s Electronic Invoicing System, building on Ministerial Decisions No. 243 and No. 244 of 2025. The documents provide technical specifications, onboarding procedures, and data requirements for phased implementation beginning in 2026.
Key Dates: Phased implementation beginning 2026; operational guidance published February 23, 2026
Impact: The UAE Ministry of Finance’s new operational guidance gives businesses the practical detail they need to select an Accredited Service Provider, assess their data readiness, and begin implementation ahead of the go-live dates.
Source: Sovos Regulatory Analysis
Oman
Two significant Q1 2026 developments for the Fawtara e-invoicing program: (1) In January 2026, the Oman Tax Authority (OTA) formalized its Peppol Authority membership, confirming the 5-corner model as the technical foundation for the Fawtara mandate. (2) The OTA officially launched Release 1 of the Fawtara portal in Q1 2026, introducing the service provider accreditation registration feature and publishing a Service Provider Registration User Manual (v1.0). Go-live drop-in sessions were scheduled for March 17, 26, and 31. The OTA also began notifying selected taxpayers of their Phase 2 inclusion.
Key Dates: Peppol Authority: January 2026; Fawtara portal Release 1: Q1 2026; Phase 1 mandatory rollout (100 large VAT-registered taxpayers): August 2026; Phase 2 (all large taxpayers): February 2027; Phase 3 (all VAT-registered): August 2027
Impact: VAT-registered businesses in Oman; service providers (access points) seeking accreditation; businesses with supply chains in Oman
Source: Peppol Authority & 5-Corner Model | Fawtara Portal Release 1
Saudi Arabia
ZATCA continued its phased rollout of Phase 2 e-invoicing (Integration Phase), with ongoing waves of taxpayer onboarding requiring integration of e-invoicing solutions with ZATCA’s Fatoora platform for real-time invoice clearance. The 24th wave includes taxpayers with annual revenues subject to Value Added Tax (VAT) between SAR 375.000 (approx. EUR 86.000) and SAR 750.000 (approx. EUR 170.000), in either 2022 or 2023.
Key Dates: Wave-based rollout ongoing through 2026
Impact: VAT-registered taxpayers subject to applicable annual VAT revenue thresholds per wave criteria
Source: Sovos Regulatory Analysis
Ghana
Ghana is modifying its treatment of the National Health Insurance Levy and the Ghana Education Trust Fund Levy, reducing the effective VAT rate from 21.9% to 20% effective January 1, 2026. Levy amounts paid on purchases will be deductible in the same manner as regular VAT payments.
Key Dates: Effective January 1, 2026
Impact: All VAT-registered businesses in Ghana
Source: Sovos Regulatory Analysis
The Gambia
The Gambian Ministry of Finance included a proposal to introduce mandatory e-invoicing for VAT and other taxes in the 2026 Budget Speech delivered to the National Assembly in December 2025. The measure targets VAT fraud and under-declaration. The proposal requires National Assembly approval before enactment.
Key Dates: Proposed; subject to National Assembly approval; effective date TBD
Impact: VAT-registered businesses in The Gambia pending legislative approval
Source: Sovos Regulatory Analysis
Nigeria
The Nigeria Revenue Service (NRS) published a notice in February 2026 announcing continuation of the phased rollout of its E-Invoicing and Electronic Fiscal System (EFS), also known as the Merchant-Buyer Solution (MBS), to medium and emerging taxpayers. Large taxpayers (annual turnover above ₦5 billion, ~€3.1M) commenced compliance in November 2025.
Key Dates: Phase for medium and emerging taxpayers: per NRS phased rollout schedule (February 2026)
Impact: Medium-sized and emerging taxpayers in Nigeria
Source: Sovos Regulatory Analysis
Togo
Togo’s Finance Law 2026 introduces a certified electronic invoicing obligation, establishing the legal framework for the digitalization of tax administration. The mandate covers B2B transactions and applies to any VAT taxpayer delivering goods or services to another VAT taxpayer.
Key Dates: Effective per Finance Law 2026 implementation schedule; TBD
Impact: VAT taxpayers engaged in B2B transactions in Togo
Source: Sovos Regulatory Analysis
Tunisia
Tunisia officially enacted the expansion of its mandatory electronic invoicing framework to include all service transactions through Finance Law 2026 (Law No. 17 of 2025). Previously, mandatory e-invoicing applied only to B2G transactions and selected sectors. The expansion brings service provision operations into full scope.
Key Dates: Effective January 1, 2026
Impact: Service providers in Tunisia; businesses subject to expanded e-invoicing scope
Source: Sovos Regulatory Analysis
Malaysia
The Inland Revenue Board of Malaysia (IRBM) published e-Invoice Specific Guideline Version 4.6 on January 5, 2026, replacing Version 4.5. The update provides guidance on transactions excluded from the individual e-invoicing requirement under Table 3,6 and the amends the period during which certain taxpayers may issue consolidated e-invoices for all transactions.
Key Dates: Effective January 5, 2026
Impact: Wholesalers and retailers of construction materials; taxpayers with an annual turnover/revenue of up to RM5 million
Source: Sovos Regulatory Analysis
Singapore
At Singapore’s Committee of Supply 2026, IRAS confirmed that the GST InvoiceNow Requirement will progressively extend to all GST-registered businesses between 2028 and 2031. Previously applying only to newly registered voluntary GST businesses, all in-scope businesses must use InvoiceNow solutions to transmit invoice data to IRAS.
Key Dates: Progressive extension to all GST-registered businesses: 2028–2031
Impact: All GST-registered businesses in Singapore
Source: Sovos Regulatory Analysis
Latin America
Brazil
Four significant Q1 2026 developments: (1) Joint Act RFB/CGIBS No. 1/2025, effective January 1, 2026, governs the application of IBS and CBS during the initial phase of Brazil’s tax reform; current electronic fiscal document models (NF-e, NFS-e, NFC-e, CT-e, MDF-e, NFCom) remain valid; penalties for missing IBS/CBS fields are suspended during the preparation period; the 2026 pilot rates (0.9% CBS, 0.1% IBS) are for testing only with no financial impact. (2) Complementary Law No. 227/2026, published January 13, 2026, formally established the IBS Management Committee (CGIBS), moving IBS from a constitutional concept into an operational tax with centralized governance and administration. (3) Technical Notes published in February 2026 established the integration between electronic tax documents (DF-e) and financial transactions as a mandatory requirement under the split payment model, linking invoicing and payment for accurate IBS and CBS liability calculation. (4) The Brazilian Federal Government introduced measures reducing federal tax incentives (PIS/Pasep, Cofins, and other federal tax regimes) effective from 2026.
Key Dates: Joint Act effective January 1, 2026; penalty enforcement deferred; Simples Nacional and MEI taxpayers affected from 2027; CL 227/2026 effective January 13, 2026; split payment Technical Notes: February 2026; federal incentive reduction: January 1, 2026; full tax reform transition through 2033
Impact: All taxpayers issuing electronic tax documents in Brazil; ERP system operators; multinational companies with Brazilian operations; financial institutions; payment processors; companies benefiting from federal tax incentives
Sources: Joint Act RFB/CGIBS No. 1/2025 | CL 227/2026 — IBS Management Committee | Split Payment Technical Notes | Federal Tax Incentive Reduction
Chile
The Chilean Tax Authority (SII) published Resolution 154, establishing additional requirements for invoices and electronic dispatch guides covering the transfer of movable tangible goods subject to VAT. The resolution mandates additional data fields including origin/destination addresses, carrier identification, vehicle license plate, and goods descriptions, and establishes a Register of Dispatch Guides within the SII.
Key Dates: Effective May 1, 2026
Impact: Businesses transferring movable tangible property in Chile; logistics and transport operators
Source: Sovos Regulatory Analysis
Dominican Republic
The Dominican Republic Tax Authority published electronic invoicing contingency instructions in February 2026, following the expiration of type “B” non-electronic tax receipt sequences for Grand National taxpayers on December 31, 2025. The instructions cover reasons for requesting contingency status and steps required to review submission history.
Key Dates: Non-electronic receipts expired December 31, 2025; contingency guidance published February 2026
Impact: Grand National taxpayers and all electronic invoice issuers in the Dominican Republic
Source: Sovos Regulatory Analysis
Mexico
The SAT updated the CFDI Complement for Technology Platforms (Plataformas Tecnológicas), including the Complement Standard, Catalogs (XLS), error matrix, and filling instructions. The updated documentation was published December 31, 2025 and entered into force January 1, 2026.
Key Dates: Effective January 1, 2026
Impact: Technology platform operators and businesses issuing CFDI through digital platform complements in Mexico
Source: Sovos Regulatory Analysis
Peru
Through Resolution No. 000392-2025/SUNAT, Peru’s tax authority postponed mandatory use of the SIRE (Electronic Sales and Income Register System) from January 2026 to June 2026. The postponement applies to qualifying main taxpayers: those classified as main taxpayers as of December 31, 2024, with 2024 net income greater than approximately $3,500,000 USD.
Key Dates: Mandatory SIRE use postponed from January 2026 to June 2026 for qualifying taxpayers
Impact: Main taxpayers in Peru with 2024 net income >$3,500,000 USD required to maintain electronic sales/purchase registers
Source: Sovos Regulatory Analysis
United States - Sales & Use Tax Changes
Chicago, Illinois
Three local tax changes effective January 1, 2026: (1) The Personal Property Lease Transaction Tax rate increased from 11% to 15%. (2) The Motor Vehicle Lessor Tax was reduced from $2.75 to $0.50 per rental period for daily or weekly motor vehicle leases. (3) A new retail liquor tax of 1.5% was imposed on the sale of alcoholic beverages purchased for off-premises consumption.
Key Dates: All three changes effective January 1, 2026
Impact: Businesses leasing personal property within Chicago; motor vehicle rental companies; liquor retailers selling for off-premises consumption
Source: Lease Transaction Tax | Motor Vehicle Lessor Tax | Off-Premises Liquor Tax
Illinois
Effective January 1, 2026, Illinois eliminated the 200-transaction threshold for establishing economic nexus for sales tax purposes. Remote retailers and marketplace facilitators are now subject to economic nexus based solely on cumulative gross receipts exceeding $100,000 from Illinois purchasers over the prior 12 months. The state also expanded its “Leveling the Playing Field” provisions to include the Service Occupation Tax (SOT) and Service Use Tax (SUT).
Key Dates: Effective January 1, 2026
Impact: Remote retailers, marketplace facilitators, and service providers with Illinois economic nexus
Source: Sovos Regulatory Analysis
Maryland
Two SUT changes in Q1 2026: (1) Tire recycling fees increased effective January 1, 2026, from $0.80 to $1.00 per tire, with a new $5.00 fee on new tires sold as part of vehicles, trailers, and farm equipment. (2) Beginning April 1, 2026, Maryland implements a PaintCare Recovery Program imposing fees on the sale of architectural paint to fund recycling and disposal.
Key Dates: Tire fee increases: January 1, 2026; PaintCare fees: April 1, 2026
Impact: Tire retailers, vehicle dealers, and architectural paint sellers in Maryland
Source: PaintCare Recovery Program | Regulatory Analysis Feed
Ohio
Ohio HB 186, signed December 19, 2025, cancelled the expanded August 2026 sales tax holiday as part of a legislative package restructuring property taxes. The historically broad two-week expanded holiday will not occur in August 2026.
Key Dates: Expanded August 2026 holiday cancelled
Impact: Retailers and consumers expecting expanded holiday exemptions
Source: Sovos Regulatory Analysis
Rhode Island
The Rhode Island Department of Revenue found that sales of access to online databases are subject to sales and use tax, treating such access as the sale of vendor-hosted prewritten computer software. The Department noted that “searchability” — the ability to research and retrieve information — is a key factor in this classification.
Key Dates: Decision effective as published (February 2026)
Impact: Businesses selling or subscribing to online database access in Rhode Island; SaaS and data services providers
Source: Sovos Regulatory Analysis
Texas
Effective January 1, 2026, Texas repealed its sales tax exemption for research and development equipment. In conjunction, the franchise tax R&D credit was expanded to 8.7% (or 10.9% for qualifying projects with Texas universities).
Key Dates: Effective January 1, 2026
Impact: Laboratories, manufacturers, and technology companies purchasing R&D equipment in Texas; sellers of R&D equipment to Texas customers
Source: Sovos Regulatory Analysis
United States - Information Reporting
Federal (IRS / SSA)
IRS — 2026 Form W-2 and General Instructions
IRS released the 2026 Form W-2 and General Instructions dated January 29, 2026, incorporating changes required by P.L. 119-21 (OBBBA, enacted July 4, 2025). Box 14 was split into 14a (general items) and 14b (Treasury Tipped Occupation Codes). Three new box 12 codes added: TA (Section 128 account contributions), TP (cash tips reported to employer), and TT (total qualified overtime compensation). The wage reporting threshold was raised from $600 to $2,000 when no taxes are withheld. The social security wage base increased from $176,100 to $184,500. W-2/W-3 filing due date changed to February 1, 2027.
Key Dates: 2026 tax year; W-2/W-3 filing due February 1, 2027
Impact: All employers required to file Forms W-2 and W-3; payroll systems requiring box 14/12 reconfiguration
Source: Sovos Regulatory Analysis
IRS – Draft 2026 Form 1099-LPS (Long-Term Care Premiums Paid Statement)
IRS released a draft version of a new form, 1099-LPS, which is expected to be finalized for tax year 2026 reporting. The form is intended to report premiums paid for long-term care insurance policies, which may carry tax implications for recipients. Because the form remains in draft status, additional changes are possible. Instructions have not yet been published, so further clarification may be provided in the coming months.
Key Dates: Final version expected in mid-2026 for tax year 2026 reporting. No filing deadline has been announced yet, but it may ultimately align with standard 1099 deadlines (e-file by 3/31, paper filing by 2/28).
Impact: Plan administrators, insurance carriers, employers, and other entities who manage long-term care premium payments.
IRS — Publication 5718: Late-Breaking Update for Processing Year 2026
IRS released a late-breaking update to Publication 5718 (IRIS A2A Electronic Filing Specifications for Processing Year 2026), clarifying that transmissions rejected due to XML Schema Validation Errors cannot use the standard 60-day replacement grace period and must be refiled as new “Original” submissions. Form 1099-QA was added to IRIS A2A with an electronic filing due date of February 28.
Key Dates: Applicable to Processing Year 2026 IRIS A2A filings; Form 1099-QA e-filing due: February 28
Impact: All filers using IRIS A2A for information return submissions
Source: Sovos Regulatory Analysis
IRS — Form 5498-ESA: Continuous Use Format
IRS released Form 5498-ESA (Rev. December 2026) in continuous use format for Coverdell ESA Contribution Information. The revised form introduces a Calendar Year field requiring filers to specify the applicable tax year. For use with 2026 information filed in early 2027.
Key Dates: For 2026 information filed in early 2027
Impact: Filers reporting Coverdell Education Savings Account contributions
Source: Sovos Regulatory Analysis
IRS — Instructions for Form 1098 (Rev. December 2026)
IRS released Instructions for Form 1098 (Rev. December 2026), reflecting changes from OBBBA (P.L. 119-21). The instructions clarify that the $750,000 acquisition indebtedness limit — previously noted as “set to expire” — has been made permanent under OBBBA.
Key Dates: Applicable to tax year 2026 information returns filed in early 2027
Impact: Mortgage lenders and servicers filing Form 1098; mortgage interest payers
Source: Sovos Regulatory Analysis
IRS — Form 1099-DA: Q1 2026 Updates
Three 1099-DA updates apply for Q1 2026: (1) Cost-basis and gain/loss reporting becomes mandatory for tax year 2026 activity (gross proceeds only was mandatory for 2025). Form 1099-DA is available exclusively through IRIS and is not supported on the legacy FIRE system. Tax year 2026 1099-DA transactions are subject to 24% backup withholding for missing or invalid TINs. (2) The IRS confirmed 1099-DA is excluded from the Combined Federal/State Filing (CF/SF) Program for Tax Year 2025; filers are responsible for meeting state filing obligations directly. (3) The IRS updated the 2025 Instructions for Form 1099-DA to add de minimis reporting rules for PDAP (Processor of Digital Asset Payments) sales and optional reporting methods, which were omitted from the prior version.
Key Dates: Cost-basis reporting mandatory for TY 2026 (filed 2027); backup withholding: TY 2026; CF/SF exclusion and de minimis rules: effective TY 2025 filings
Impact: Brokers and digital asset custodians; financial institutions; digital asset payment processors (PDAPs); states with separate 1099-DA filing requirements
Source: Cost-Basis & IRIS Filing | CF/SF Exclusion | De Minimis Rules
State / Local
Colorado
Two updates effective Q1 2026: (1) New rule 39-22-604-2 for gambling withholding was added, confirming a 4% withholding rate and requiring payors of gambling winnings to register; regulations for real estate and optional non-wage withholding were also updated. (2) The state-level sales and use tax vendor service fee (timely-filing discount available to retailers) was eliminated effective January 1, 2026; this does not affect local-level service fees.
Key Dates: Non-wage withholding regulations: effective Q1 2026; vendor service fee elimination: January 1, 2026
Impact: Payors of gambling winnings; real estate transaction parties; Colorado sales and use tax filers who retained the state vendor service fee
Sources: Non-Wage Withholding Update | Vendor Service Fee Eliminated
Maine
Change: Effective January 1, 2026, Maine repealed its longstanding service provider tax and began applying sales tax to streaming subscription services. Maine also announced it will conform to the IRIS XML format for Form 1099 filings beginning tax year 2026, aligning with the federal transition away from FIRE.
Key Dates: Streaming subscription tax: January 1, 2026; IRIS XML conformance for 1099s: tax year 2026
Impact: Streaming service providers with Maine customers; information return filers with Maine filing obligations
Source: Sovos Regulatory Analysis
Maryland
Change: Maryland released a tax alert detailing how the federal One Big Beautiful Bill Act (P.L. 119-21) affects Maryland tax. Maryland has automatically decoupled from several business provisions of the Act and clarified that certain individual tax changes — including the overtime deduction, tips deduction, and Trump Account — may require separate state action.
Key Dates: Applicable to tax year 2026 and forward; alert published January 23, 2026
Impact: All businesses and individuals filing Maryland income taxes affected by federal OBBBA provisions
Source: Sovos Regulatory Analysis
New Mexico
Change: The New Mexico Taxation and Revenue Department released new Form TRD-41431 (Workers’ Compensation Fee Return and Employees’ Quarterly Wage and Withholding Report), effective for reporting periods beginning January 1, 2026. All taxpayers who withhold New Mexico tax from wages, pensions, and annuities are now required to file on a quarterly basis, expanding beyond the prior scope.
Key Dates: Effective for reporting periods beginning January 1, 2026
Impact: All employers and payors withholding New Mexico tax from wages, pensions, and annuities
Source: Sovos Regulatory Analysis
Rhode Island
Change: The Rhode Island Division of Taxation released Advisory 2026-05, providing updated guidance on Form 1099 filing requirements for Tax Year 2025. Beginning Tax Year 2025, issuers must file Form 1099 with the Division whenever income greater than $100 is reported, regardless of federal payer thresholds.
Key Dates: Applicable to Tax Year 2025 returns
Impact: All entities issuing Forms 1099 with Rhode Island filing obligations; filers previously relying on federal thresholds
Source: Sovos Regulatory Analysis
Report Metadata
Generated: March 23, 2026 | Source: Sovos Regulatory Analysis Feed
Period: Q1 2026 (January 1 – March 23, 2026) | Total Updates: 48 country/topic entries across 5 regions
Regions: Europe, Middle East & Africa, APAC, LATAM, US | Report Version: 3.0.0
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