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: 1 July 2026 – 30 September 2026
What is Sovos TaxScapes?
TaxScapes is Sovos’ quarterly roundup of global tax compliance developments, bringing together insights from regulatory experts around the world. Get a clear, region-by-region view of changing tax obligations, reporting requirements and upcoming deadlines, and what they mean for your business.
As governments introduce new requirements and demand more detailed, timely data, regulatory change has implications far beyond the tax team. It impacts how businesses issue and receive invoices, report information, calculate and withhold taxes, and coordinate across Finance, Tax and IT. Staying informed helps you identify risks early, prioritize investment and prepare before deadlines put pressure on your operations.
Sovos’ regulatory experts monitor and interpret these developments, turning complex requirements into practical insights. TaxScapes brings their expertise together to help you understand which changes matter to your business and where to focus your attention.
Join our quarterly webinars for a deeper look at the most significant changes and the challenges they present.
Q3 2026 was defined by the live deployment of France’s landmark CTC e-invoicing mandate on 1 September 2026; the most technically complex mandate yet deployed in Europe. The DGFiP confirmed the date in July and published detailed start-up compliance guidance; Décret n° 2026-677 completed the legal framework on 28 July.
Belgium recorded a dual development: a near-real-time e-reporting draft law building on its live B2B mandate, and an IPT rate increase to 9.60%. Germany signalled future VAT reporting and data-localisation obligations; Luxembourg introduced a draft Peppol B2B e-invoicing mandate. Portugal confirmed the INEM insurance levy remains at 2.5%.
In Middle East & Africa, the UAE opened Phase 1 of its Peppol-based Electronic Invoicing System, with large-business ASP appointment due by 31 July, while Saudi Arabia notified its 25th wave of FATOORA Phase 2 taxpayers and Oman’s Fawtara programme went live for its initial 100-taxpayer cohort in August.
Across APAC, India suspended e-Way Bill system enhancements indefinitely and Malaysia introduced dedicated SVDP e-invoice document versions.
LATAM activity was high-volume: Brazil activated its IBS/CBS e-document mandate from 3 August with penalty enforcement from 1 August; Ecuador established a provider registry and centralised transportation invoicing; Peru extended multiple e-invoicing deadlines and transitioned aviation ticket reporting.
In the US, material changes spanned Sales & Use Tax (Utah digital streaming, Pennsylvania local-tax sourcing reform, Connecticut holiday threshold), Information Reporting (IRS foreign TCC GIIN registration, Publication 1179 revision), and Unclaimed Property (Florida SB 1452 overhaul, Louisiana HB 1256 digital asset escheatment).
Regional Tax Regulatory Updates
| Region | Updates | Countries | Primary Focus Areas |
| Europe | 6 | Belgium, France, Germany, Lithuania, Luxembourg, Portugal | France CTC go-live (Sep 2026); Belgium dual e-reporting draft + IPT rate increase; Germany VAT reporting / archiving action plan; Luxembourg draft Peppol B2B mandate; Lithuania maritime IPT proposal; Portugal INEM levy confirmed at 2.5% |
| Middle East & Africa | 3 | Oman, Saudi Arabia, UAE | UAE Phase 1 pilot + ASP deadline; Saudi Arabia Wave 25 FATOORA Phase 2; Oman Fawtara Phase 1 go-live (Aug 2026) |
| APAC | 2 | India, Malaysia | India e-Way Bill enhancements suspended; Malaysia SVDP document versions 1.2 and 1.3 introduced |
| LATAM | 3 | Brazil, Ecuador, Peru | Brazil IBS/CBS e-document mandate activated; Ecuador provider registry + transport invoicing; Peru multiple deadline extensions + aviation ticket reporting transition |
| US — Sales & Use Tax | 5 | Connecticut, Kansas, Pennsylvania, Utah, West Virginia | Utah digital streaming tax; Pennsylvania destination-based local sourcing; Connecticut holiday threshold to $300; Kansas disabled-veteran exemption; Randolph County ambulance fee suspended |
| US — IRW Federal | 2 | US (Federal) | IRS Publication 1179 revised (5498-TA, 1098-LVI, 1099-LPS); IRS foreign TCC GIIN registration via IDES |
| US — IRW State/Local | 2 | Florida, Louisiana | Florida SB 1452 unclaimed property overhaul; Louisiana HB 1256 digital asset escheatment framework |
Indirect Tax Suite Regulatory Changes
Europe
France
Change: (1) On 10 July 2026, the DGFiP published its practical start-up guide (Facturation électronique : guide pratique de démarrage) confirming the 1 September 2026 go-live without deferral. The guide established three operating principles: the legal obligation applies from 1 September in full, without suspension; the reform governs how invoices are transmitted and does not alter underlying commercial, accounting, or VAT rules; and reliance on fallback channels does not constitute exemption. For large companies and ETIs, both electronic invoice issuance and e-reporting obligations start on 1 September; penalties are not automatic for entities demonstrating documented good faith and a credible compliance trajectory.
(2) On 28 July 2026, Décret n° 2026-677 and the Arrêté were published in the Official Journal (effective 29 July), completing the secondary legislative framework before the go-live. The texts formally abolish the PPF as an invoice issuance platform, transition the ecosystem to a fully PA-centric model, codify the minimum format baseline around EN16931 and EXTENDED-CTC-FR, zed platform mobility rules including a one-year minimum service continuity obligation on outgoing platforms, and introduce a new mid-cycle compliance audit for Approved Platforms.
Key Dates: 1 September 2026 — all companies must be able to receive e-invoices; large and intermediate-sized companies must issue and e-report; 1 September 2027 — SMEs and micro-enterprises; 29 July 2026 — Décret n° 2026-677 and Arrêté entered into force.
Impact: All VAT-registered companies established in France; Approved Platform (PA) operators; non-established large/intermediate taxpayers (e-reporting on acquisitions deferred to September 2027).
Sources: DGFiP Start-Up Guidance — France (July 2026) | Décret n° 2026-677 — France (July 2026) [Sovos Regulatory Analysis Feed]
Belgium
Change: (1) On 20 July 2026, the Belgian Council of Ministers approved a draft law amending the VAT Code to introduce a near-real-time obligation to report certain mandatory invoice data electronically to the tax administration — from both the supplier and the buyer. This dual-sided digital reporting system builds on the generalised B2B e-invoicing obligation in force since 1 January 2026 and, as a consequence, will abolish the Annual List of Taxable Customers for in-scope taxpayers. The preliminary draft has been submitted to the Data Protection Authority and the Council of State for advice; effective date remains TBD. The initiative aligns with the EU ViDA Directive framework.
(2) Effective 1 July 2026, the standard Belgian Insurance Premium Tax (IPT) rate increased from 9.25% to 9.60%. The Belgian Tax Authority (BETA) published a new consolidated return template for use where the premium due date falls on or after 1 July 2026; the previous template continues to apply to earlier due dates. Negative IPT amounts arising from cancellations of policies originally taxed at 9.25% must be recovered through BETA’s dedicated reclaim process and may not be declared on the new template.
Key Dates: 1 July 2026 — IPT rate increases to 9.60% and new return template mandatory for premiums due on or after this date; VAT Code e-reporting draft — effective date TBD pending Council of State advice and parliamentary passage.
Impact: (1) VAT-registered taxpayers subject to Belgian B2B e-invoicing obligations; service providers integrating with the Belgian invoicing ecosystem. (2) Non-life and life insurance premium taxpayers and insurers writing Belgian-taxable policies.
Sources: Belgium Draft Dual Near Real-Time E-Reporting (July 2026) [Sovos Regulatory Analysis Feed] | Belgium — Standard IPT Rate Increases from 9.25% to 9.60%
Germany
Change: Germany’s Federal Ministry of Finance and Federal Ministry of Justice published a joint action plan against tax and financial crime on 16 July 2026, announcing three future compliance measures:
(1) introduction of a VAT reporting system aligned with near-real-time, invoice-level reporting models emerging elsewhere in the EU, building on Germany’s existing B2B e-invoicing rollout;
(2) extension of accounting document retention from 10 to 15 years; and
(3) a requirement for companies to store tax-relevant data on mirror servers located in Germany. All three measures are at policy-plan stage only; none is yet reflected in draft legislation. Technical scope, application thresholds, and implementation timelines remain to be defined.
Key Dates: Policy announcement: 16 July 2026; legislative timelines: TBD.
Impact: All businesses registered for VAT in Germany; companies subject to GoBD document retention rules; cloud-based ERP and data storage providers with German operations.
Source: Germany Action Plan — VAT Reporting, 15-Year Archiving, Data Localisation (July 2026)
Lithuania
Change: Lithuania published a draft amendment to the Law on Security Contribution (No. XV-283) proposing a reduced 3% insurance tax rate for seagoing vessel insurance, down from the standard 10% rate applicable to non-life insurance premiums. The change would align Lithuania’s treatment of maritime insurance with several other EU member states that apply reduced or exempt rates to this class. Proposed; subject to Seimas approval.
Key Dates: 1 January 2027 — proposed effective date if adopted; subject to legislative passage.
Impact: Insurers writing marine and hull policies on Lithuanian-registered vessels.
Source: Lithuania — Proposed Maritime Insurance Tax Rate Change
Luxembourg
Change: On 17 July 2026, the Luxembourg Government Council announced a draft bill introducing mandatory e-invoicing for domestic B2B transactions. Peppol will serve as the interoperability network, extending the existing B2G e-invoicing framework to the private sector. The bill forms part of Luxembourg’s broader implementation of the EU ViDA Directive and must complete the legislative process before entering into force. Proposed; subject to Chamber of Deputies approval. A cross-industry support programme including information sessions, workshops, and software acquisition subsidies has been announced by the Chamber of Commerce.
Key Dates: 1 January 2028 — proposed general obligation for all companies to receive e-invoices; 1 July 2028 — proposed issuance obligation for large and medium-sized businesses; 1 January 2029 — proposed extension to remaining businesses.
Impact: All companies conducting domestic B2B transactions in Luxembourg; ERP and billing system providers requiring Peppol integration; Peppol-accredited service providers.
Source: Luxembourg — Draft Bill: Mandatory B2B E-Invoicing (July 2026)
Portugal
Change: Further to a proposal reported in June 2026 to increase the INEM (National Medical Emergency Institute) insurance levy from 2.5% to 3.5%, the new INEM organic law was published in the Diário da República on 16 July 2026. The published text contains no amendment to the levy rate. The rate charged on Life, Health, Accident, and Motor insurance premiums remains at 2.5%.
Key Dates: 16 July 2026 — new organic law published; INEM levy rate confirmed at 2.5% effective immediately.
Impact: Insurers writing Life, Health, Accident, and Motor insurance in Portugal; premium tax compliance and reporting systems.
Asia Pacific, Middle East and Africa
United Arab Emirates
Change: The UAE Electronic Invoicing System entered its first operational phase in Q3 2026. Per Ministerial Decisions No. 243 and 244 of 2025, a pilot programme commenced on 1 July 2026 with a selected taxpayer working group. Large businesses with annual revenue of AED 50 million or above were required to appoint an Accredited Service Provider (ASP) by 30 October 2026 and must implement the full Electronic Invoicing System by 1 January 2027. The mandate covers B2B and B2G transactions under a Peppol five-corner decentralised CTC-exchange (DCTCE) model; no clearance requirement applies. B2C transactions are excluded pending a future ministerial decision. Smaller businesses (annual revenue below AED 50 million) must appoint an ASP by 31 March 2027 and implement by 1 July 2027.
Key Dates: 1 July 2026 — Phase 1 pilot go-live; 30 October 2026 — ASP appointment deadline (large businesses, AED 50 million+ revenue); 1 January 2027 — full system mandate (large businesses); 31 March 2027 — ASP appointment deadline (smaller businesses); 1 July 2027 — full system mandate (smaller businesses).
Impact: All persons conducting business in the UAE; B2B and B2G transactions; businesses with revenue at or above AED 50 million are in the first compliance wave; Accredited Service Providers.
Saudi Arabia
Change: ZATCA announced the criteria for the twenty-fifth group of taxpayers subject to Phase 2 of the FATOORA e-invoicing mandate. The group covers all taxpayers whose revenues subject to VAT exceeded SAR 187,500 during 2022, 2023, 2024, or 2025. ZATCA will begin notifying affected businesses to prepare for integration with the FATOORA clearance platform. Phase 2 requires businesses to connect their systems to FATOORA, submit B2B invoices for clearance before issuance, and report B2C invoices.
Key Dates: 1 February 2027 — mandatory FATOORA Phase 2 compliance deadline for Wave 25 taxpayers; ZATCA notification period: Q3 2026.
Impact: All VAT-registered businesses whose revenues exceeded SAR 187,500 in any of 2022–2025; e-invoicing service providers integrating with FATOORA.
Source: Saudi Arabia — Wave 25 FATOORA Phase 2 Notification [Sovos Regulatory Analysis Feed]
Oman
Change: The Oman Tax Authority (OTA) Fawtara e-invoicing programme reached its Phase 1 go-live in August 2026, requiring the initial cohort of 100 large VAT-registered taxpayers to begin transacting through OTA-accredited service providers via the Peppol five-corner model. This milestone follows the OTA’s Peppol Authority membership formalisation (January 2026), the launch of the Fawtara ASP accreditation portal (Q1 2026), and the completion of the ASP registration and accreditation process (from May 2026). Phase 2 (remaining large taxpayers) is targeted for February 2027; Phase 3 for August 2027; Phase 4 (government entities) for August 2028.
Key Dates: August 2026 — Phase 1 go-live (100 large VAT-registered taxpayers); February 2027 — Phase 2; August 2027 — Phase 3; August 2028 — Phase 4 and full coverage.
Impact: 100 large VAT-registered taxpayers in Phase 1; all VAT-registered businesses progressively through August 2028; OTA-accredited service providers.
India
Change: The Goods and Services Tax Network (GSTN) issued an advisory on 29 July 2026 placing all e-Way Bill system enhancements on hold until further notice, following representations from taxpayers, GSPs, ERP providers, and ASPs requesting additional preparation time. Two enhancements were suspended:
(1) mandatory capture of the Ship-To GSTIN in Bill-To/Ship-To transactions to improve data traceability; and
(2) a new voluntary e-Way Bill closure functionality allowing taxpayers and transporters to close EWBs upon delivery. The implementation date had previously been extended from 15 June to 1 August 2026. All related advisories and FAQs are withdrawn from the GST Portal; no system changes are required in the production environment until further communication from GSTN.
Key Dates: 29 July 2026 — advisory issued placing enhancements on hold; revised implementation date: TBD.
Impact: All GST taxpayers, GST Service Providers (GSPs), ERP providers, and transporters using the e-Way Bill system; B2B taxpayers using Bill-To/Ship-To transactions.
Malaysia
Change: Malaysia’s Inland Revenue Board (HASiL) introduced two new e-invoice document versions in the MyInvois SDK exclusively for use under the e-Invoice Special Voluntary Disclosure Programme (SVDP): SVDP 1.2 (without digital signature) and SVDP 1.3 (with digital signature). These versions allow taxpayers to regularise historical e-invoicing non-compliance during the SVDP window; HASiL is cross-referencing MyInvois transaction data against income tax returns to identify unreported income. Taxpayers and service providers must update API integrations to support the new versions, and batch upload users must download the latest template version. The new document versions may only be submitted during the SVDP effective period and may not be used outside of it.
Key Dates: 31 December 2027 — SVDP effective period end; SVDP document versions 1.2 and 1.3 available exclusively during this period.
Impact: All MyInvois-integrated taxpayers and service providers participating in the SVDP; software providers and GSPs requiring API updates.
Source: Malaysia — New E-Invoice SVDP Document Versions (July 2026)
Latin America
Brazil
Change: (1) Joint Act RFB/CGIBS No. 4/2026 (published 31 July 2026) established mandatory issuance dates for IBS (Goods and Services Tax) and CBS (Contribution on Goods and Services) electronic tax documents under the Brazilian tax reform. Wave 1 became effective 3 August 2026, covering NF-e (Model 55), NFC-e (Model 65), CT-e (Model 57), CT-e OS (Model 67), BP-e, MDF-e, GTV-e, NF3e, DC-e, and NFS-e Via. Wave 2 (October 2026) covers NFS-e for other ISS services, NFCom, DIR, and DeRE taxpayer master data events. Wave 3 (November 2026) covers DeRE monthly periodic events. Wave 4 (December 2026) covers NFS-e in remaining situations, BP-e for semi-urban and air transport, NFGas, NFAg, NF-e ABI, and NF-e for IBS/CBS non-ICMS taxpayers. Simples Nacional taxpayers follow a unified 1 January 2027 start date. (2) From 1 August 2026, penalties may be imposed for failure to include IBS and CBS fields in tax documents, following the publication of IBS/CBS regulations triggering the deadline established in Joint Act RFB/CGIBS No. 1/2025.
Key Dates: 1 August 2026 — IBS/CBS penalty liability activated; 3 August 2026 — Wave 1 mandatory; 1 October 2026 — Wave 2; 15 November 2026 — Wave 3; 1 December 2026 — Wave 4; 1 January 2027 — Simples Nacional and remaining documents.
Impact: All IBS/CBS-registered taxpayers; goods and services suppliers issuing NF-e, NFC-e, CT-e, NFS-e, and related document types; Simples Nacional regime taxpayers; digital platforms; leasing and condominium operators.
Sources: Brazil — IBS/CBS Mandatory E-Document Timeline (August 2026) | Brazil — IBS/CBS Go-Live Penalty Exposure [Sovos Regulatory Analysis Feed]
Ecuador
Change: (1) SRI Resolution NAC-DGERCGC26-00000027 (published 28 July 2026, Official Register) created a formal registry for electronic invoicing software and service providers within the RUC taxpayer registry. Providers domiciled in Ecuador or with permanent establishment must register under new economic activity code J62021002 (proprietary source code developers/owners) or J62021003 (third-party system resellers) within 30 days. Issuers of electronic invoices must include their technology provider’s RUC number in the additional information section of each invoice within 60 days. From October 2026, SRI will publish and update a monthly authorised provider list by the 10th of each month. Version 2.34 of the Technical Sheet for Offline Electronic Receipts (27 July 2026) updated Annex 26 with the mandatory field structure. (2) SRI Resolution NAC-DGERCGC26-00000024 introduced new invoicing obligations for commercial ground transportation operators, centralising customer invoicing at the operator level. Members/shareholders must invoice only the operator; operators must issue invoices to customers. Electronic invoices must include the vehicle licence plate. Operators have until December 31st 2026 to adapt their systems.
Key Dates: 28 July 2026 — provider registry resolution published; 27 August 2026 — provider RUC registration deadline; 26 September 2026 — issuer disclosure implementation deadline; October 2026 — monthly provider list begins; 90-day adaptation window for transportation operators.
Impact: Electronic invoicing software providers domiciled in or with a permanent establishment in Ecuador; all companies issuing electronic invoices; commercial ground transportation operators and member/shareholder drivers.
Sources: Ecuador — Provider Registry and Issuer Disclosure (August 2026) | Ecuador — Ground Transportation Invoicing Obligations (August 2026)
Peru
Change: (1) Superintendence Resolution No. 000143-2026/SUNAT (published 31 July 2026) postponed two deadlines under Resolution No. 000048-2026/SUNAT for airport passenger service providers, attribution document issuers, and natural gas sector firms: the resolution’s entry into force shifted from 1 August 2026 to 1 January 2027, and mandatory electronic issuer designation shifted from 1 November 2026 to 1 April 2027. (2) Superintendence Resolution No. 000141-2026/SUNAT extended the PEI-WEB programme implementation deadline to 1 January 2027, granting additional preparation time. (3) Resolution No. 000140-2026/SUNAT (published 29 July 2026) allows commercial aviation companies to use PDT No. 3540 to report air transport tickets for August–December 2026. From January 2027, commercial aviation companies must comply with the new Air Transport Tickets Informative Return: UBL 2.1 XML format, filed per-ticket by the seventh calendar day of the following month, with expanded data including flight number, reservation code, itinerary, and fare.
Key Dates: 1 January 2027 — electronic issuer mandate entry into force (postponed from 1 August 2026); 1 April 2027 — mandatory electronic issuer designation (postponed from 1 November 2026); August–December 2026 — PDT No. 3540 provisional use for aviation tickets; 1 January 2027 — UBL 2.1 Air Transport Tickets Informative Return mandatory; 1 January 2027 — PEI-WEB entry into force.
Impact: Airport passenger service providers; companies issuing attribution documents; natural gas sector firms in the Main Network Guarantee; commercial aviation companies providing domestic and international passenger services from Peru.
Sources: Peru — SUNAT Postpones Key E-Invoicing Deadlines (August 2026) | Peru — PEI-WEB Reporting Requirements Postponed (August 2026) | Peru — Temporary Use of PDT No. 3540 for Aviation Tickets (August 2026)
United States - Sales & Use Tax Changes
Connecticut
Change: Connecticut enacted Public Act No. 26-68, expanding the annual sales tax holiday. The per-item exemption threshold for qualifying clothing and footwear was raised from $100 to $300. The holiday was also expanded to include bookbags and cleated shoes. This expansion applies on top of a newly enacted permanent exemption for non-electronic school supplies such as notebooks, pens, pencils, crayons, paper, binders, and lunchboxes.
Key Dates: 16–22 August 2026 — 2026 sales tax holiday; $300 threshold in effect for the 2026 holiday period. These expanded exemptions will also apply to future sales tax holidays in Connecticut.
Impact: Retail sellers of clothing, footwear, bookbags, and cleated shoes in Connecticut; consumers purchasing qualifying items during the holiday window.
Source: Connecticut — 2026 Sales Tax Holiday Update [Sovos Regulatory Analysis Feed]
Kansas
Change: Kansas enacted K.S.A. 79-3606h, creating a sales tax exemption for qualifying disabled veterans on up to $24,000 of purchases per calendar year. Purchases of motor vehicles, alcohol, tobacco, and e-cigarettes are excluded from the exemption. Veterans who have been honorably discharged (including a general discharge under honorable conditions) and who have been certified with a 100% permanent and total service-connected disability, may apply to the Kansas Department of Revenue for an exemption certificate card.
Key Dates: 1 July 2026 — exemption effective.
Impact: Disabled veterans qualifying under state criteria; retailers making sales to qualifying veterans.
Source: Kansas — Disabled Veteran Sales Tax Exemption [Sovos Regulatory Analysis Feed]
Pennsylvania
Change: Governor Josh Shapiro signed Pennsylvania’s 2026–27 budget on 12 July 2026, incorporating Senate Bill 146, which adds Sections 8043 and 8044 to the Fiscal Code. The legislation shifts local sales tax sourcing for Philadelphia and Allegheny County — the only two Pennsylvania localities with a local sales tax — from an origin-based to a destination-based standard. Tax now applies based on the customer’s location. Previously, sellers located outside Pennsylvania had no legal obligation to collect Pennsylvania local tax. Under the law, this change is retroactive to January 1, 2026 but the Pennsylvania DOR gave taxpayers until October 1 to become compliant.
Key Dates: 1 October 2026
Impact: All sellers making sales to customers in Philadelphia and Allegheny County; remote sellers previously not required to collect and remit Pennsylvania local tax.
Source: Pennsylvania — Destination-Based Local Tax Sourcing (July 2026)
Utah
Change: Utah enacted Senate Bill 162, expanding their sales tax base to include digital goods such as streaming and subscription services. Tax now applies regardless of whether these products are downloaded or merely accessed remotely.
Key Dates: 1 July 2026 — effective date.
Impact: Streaming service providers and digital content platforms with Utah customers; subscribers to audio, video, gaming, and e-book streaming services in Utah.
Source: Utah — Digital Streaming Tax Expansion [Sovos Regulatory Analysis Feed]
West Virginia — Randolph County
Change: Randolph County approved a 0.4% Emergency Ambulance Service Fee in May 2026, applicable to all taxable sales and services within the county. On 2 July 2026, the Randolph County Commission voted to suspend collection of the fee with immediate effect and on August 19, 2026 the West Virginia Attorney General released an opinion stating that fee, as structured, was impermissible as currently structured and encouraged the County Commissioner to work with the state DOR in creating a legally permissible fee.
Key Dates: 2 July 2026 — suspension effective; fee remains suspended
Impact: Sellers of taxable goods and services in Randolph County; consumers making taxable purchases in-county.
Source: Randolph County, WV — Ambulance Service Fee Suspended (July 2026)
United States - Information Reporting
Federal (IRS / SSA)
IRS — 2026 Form W-2VI: Wage Reporting for Virgin Island Earners
Change: The IRS released the 2026 W-2VI, the wage reporting form for Virgin Island earners. The updated form adds box 14b for reporting qualifying tipped income codes. Recipient instructions now include descriptions for three new income codes: TA (Section 230A contributions), TP (cash tips), and TT (overtime payments). The 2026 FICA and elective deferral limits have also been updated throughout the form.
Key Dates: September 29, 2026 — form released; applicable for tax year 2026 wage reporting.
Impact: Employers and payroll processors reporting wages for Virgin Island earners; employees receiving Virgin Island wages.
Source: Sovos — IRS Releases 2026 W-2VI For Reporting Virgin Island Wages
IRS — Form 1098-VLI: Final Form and Instructions for Vehicle Loan Interest Reporting
Change: The IRS published the final Form 1098-VLI and accompanying instructions, used to report interest paid on vehicle loans under IRC § 163(h)(4). The final form adds two checkboxes not in the prior draft: Box 6 confirms the original use of the vehicle began with the payer of record, and Box 7 confirms final vehicle assembly was performed domestically — both required conditions for the deduction. Interim filing relief offered for tax year 2025 will not be extended to tax year 2026.
Key Dates: Tax year 2025; January 31 — form due to borrowers; February 28 (paper) / March 31 (electronic) — form due to the IRS; applicable to payments of $600 or more.
Impact: Lenders, banks, and financial institutions issuing qualifying vehicle loans; borrowers seeking to claim the vehicle interest deduction under IRC § 163(h)(4).
Source: Sovos — IRS Publishes Final 1098-VLI Form, Instructions
IRS — Publication 1586: Revised Guidance for Missing and Incorrect TINs on Information Returns
Change: The IRS revised Publication 1586, “Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs on Information Returns.” Key substantive updates include: removal of outdated CD/DVD review instructions; updated penalty rates reflecting $60 per return for incorrect name/TIN matches (effective tax year 2024 forward); and a new clarification that the de minimis rule for corrections applies to returns due January 31 — a point not previously stated. Additional editorial changes were made throughout.
Key Dates: September 14, 2026 — revised publication released; $60 per-return penalty rate applicable for tax year 2024 and forward.
Impact: Filers of information returns and name/TIN mismatch resolution; compliance and withholding teams overseeing TIN solicitation processes.
Source: Sovos — IRS Revises Publication 1586, Guidance for Missing and Incorrect TINs on Information Returns
IRS — T.D. 10053: Final Regulations Aligning Backup Withholding with the Form 1099-K Threshold
Change: The IRS and Treasury published final regulations (T.D. 10053) revising backup withholding rules for third-party network transactions under IRC § 3406. Implementing Section 70432(b)(1) of the One Big Beautiful Bill Act, the regulations tie the backup withholding trigger for third-party settlement organizations to the Form 1099-K threshold: withholding applies only once a third-party settlement organization (TPSO) payee exceeds both 200 transactions and $20,000 in a calendar year. A look-back rule requires withholding on all payments to any payee for the full calendar year following a year in which they received a reportable payment, carrying forward until a full year passes with no reportable payments.
Key Dates: August 10, 2026 — final regulations published (T.D. 10053); effective for payments in calendar years beginning after December 31, 2024.
Impact: Third-party settlement organizations, payment service providers, and marketplace platforms subject to Form 1099-K reporting; compliance teams managing backup withholding obligations for network transactions.
Source: Sovos — IRS Aligns Backup Withholding with 1099-K Threshold
IRS — Publication 1179: Substitute Form Specifications
Change: The IRS released its 2026 revision to Publication 1179 (“General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns”). The revision adds specifications and required legends for three new forms: 5498-TA (Trump Account Contribution Information), 1098-LVI (Vehicle Loan Interest Statement), and 1099-LPS (Long-Term Care Premiums Paid Statement). Document references have been updated throughout: the former General Instructions are replaced by Publication 1099, and electronic filing documentation now references Publication 5178 for IRIS.
Key Dates: 3 August 2026 — publication released; applicable for tax year 2026 substitute form preparation.
Impact: Third-party printers and preparers producing substitute paper copies of covered information returns; financial institutions, insurance companies, and plan administrators issuing the new covered forms.
Source: IRS — 2026 Publication 1179 Substitute Form Specifications (August 2026)
IRS — Foreign Transmitter Control Code (TCC GIIN) Registration
Change: The IRS established a pathway for foreign filers to obtain Transmitter Control Codes (TCCs), enabling electronic filing of US information returns without requiring US Tax Identification Numbers. Foreign filers receive a TCC Global Intermediary Identification Number (TCC GIIN) and file through IDES (the International Data Exchange Service used for FATCA), rather than the domestic IRIS system. This removes a structural barrier that previously prevented foreign filers without US TINs from meeting their electronic filing obligations.
Key Dates: 3 August 2026 — IRS guidance published; TCC GIIN registration available immediately.
Impact: Foreign financial institutions and entities required to file US information returns; non-US filers subject to FATCA reporting; filers without US Tax Identification Numbers previously unable to access IRIS.
Source: IRS — Foreign TCC GIIN Registration for IDES Filing (August 2026)
State / Local
Florida — ‘Disposition of Unclaimed Property’ Act
Change: Governor Ron DeSantis signed Senate Bill 1452 on 26 June 2026, enacting sweeping amendments to the Florida Disposition of Unclaimed Property Act, effective immediately. Key changes include: replacement of the term “unclaimed” with “abandoned” throughout the chapter; revised presumption of abandonment for securities and equity interests using the earliest of three triggers — three years after return mail, five years from last owner contact, or two years from confirmed owner death; a 10-year dormancy period exception for securities where the holder knows the owner’s location and communicates at least annually; extended dormancy periods for matured and unmatured debt and dividends from three to five years; virtual currency dormancy extended from five to seven years; a pre-escheat notice obligation for holders not sending annual first-class mail; revised due diligence timeframe to 90–180 days before filing; a certified mail requirement for property valued over $1,000; and new definitions for abandoned property, authorized representative, digital asset accounts, and non-freely transferable securities.
Key Dates: 26 June 2026 — effective date; new dormancy periods apply prospectively.
Impact: All holders of Florida unclaimed property including financial institutions, insurance companies, securities firms, and corporations; holders of digital assets, equities, debt instruments, and dividend accounts; annual unclaimed property report filers.
Source: Florida — SB 1452 Unclaimed Property Act Overhaul (July 2026)
Louisiana — Digital Asset Escheatment
Change: Louisiana enacted House Bill 1256 (signed 9 June 2026, effective 1 January 2027), establishing the criteria and procedures for escheatment of digital asset accounts under the state’s unclaimed property framework. Digital assets are presumed abandoned three years after the owner’s last indication of interest, or three years after a returned first-class mailing. The law defines digital assets, digital asset accounts, private keys, and designated custodians, and sets out holder, administrator, and custodian duties including delivery protocols, liquidation procedures, annual reconciliation, and liability protections. Holders with full control of private keys must report and deliver assets in their native form within 30 days of the annual report; holders with only partial keys must maintain the asset until transferability is achieved.
Key Dates: 1 January 2027 — effective date.
Impact: Cryptocurrency exchanges, custodians, and digital wallet providers holding Louisiana-resident assets; all holders of digital asset accounts on behalf of Louisiana residents; Louisiana unclaimed property administrators.
Source: Louisiana — HB 1256 Digital Asset Escheatment (July 2026)
Report Metadata
Generated: 22 September 2026 | Source: Sovos Regulatory Analysis Feed (pages 1–N)
Period: Q3 2026 (1 July 2026 – 30 September 2026) | Total Country Entries: 23 | Report Version: 1.0.0
Regions: Europe, Middle East & Africa, APAC, LATAM, US | Sections: Indirect Tax Suite; Information Reporting & Withholding
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