As a new year begins, it brings with it updates to tax laws and regulations worldwide. As we approach 2025, businesses face a growing number of challenges, including stricter data validation requirements, increased complexity in record-to-report processes, and heightened expectations for technology adoption.

• E-invoicing and digital reporting mandates are accelerating globally, with 2025 bringing new or expanded mandates for B2B and B2C transactions across many countries. No mandate is the same - each comes with unique models and data formats, making compliance increasingly complex.
  While 2025 is the focus here, 2026 cannot be ignored and is already shaping up with mandates from Belgium, Poland, and Latvia, highlighting the importance of early preparation. A trusted service provider and partner can help you stay ahead of the curve and ensure seamless compliance with evolving requirements.
• Countries like Egypt have implemented stringent reporting requirements, necessitating robust data management and validation processes.
• To streamline VAT processes and mitigate risks, tax authorities in various jurisdictions, such as Hungary, Romania, Spain, and Greece, are introducing prefilled tax returns. While this may simplify certain compliance aspects, it introduces new complexities and challenges, particularly for businesses operating in multiple countries.
• Tax authorities are harnessing the power of AI and big data to revolutionize tax compliance. By analyzing vast amounts of data in real-time, they can identify potential non-compliance with unprecedented accuracy and conduct targeted audits. As a real-life example, starting from January 2025, the Hungarian Tax Authority will start to regularly compare the data from the real-time invoice reporting system with the information on the VAT returns.

In this blog post, we’ll highlight the major VAT/GST, e-invoicing, digital reporting, fiscalisation, data sharing, and returns-related changes that are coming into effect and outline what you need to know to remain compliant.

E-invoicing and Digital Reporting

Below, we’ve outlined the key e-invoicing and digital reporting updates for 2025.

🇧🇴 Bolivia

In 2025, Bolivia will expand its mandatory e-invoicing regime to include taxpayers in groups 9-12. These taxpayers are required to comply with the e-invoicing mandate by February 1, 2025, or March 1, 2025, depending on their respective group. The requirement applies to both B2B and B2C transactions utilizing the XML format.

🇨🇳 China

From December 1, 2024, China’s fully digitalized e-fapiao system has expanded nationwide, making digital electronic invoices available to all taxpayers. Supported by a national e-invoice platform, this rollout aims to simplify the issuance and management of invoices. Through 2025, the system is expected to encourage broader adoption across both B2B and B2C transactions.

🇨🇷 Costa Rica

Costa Rica has introduced Executive Decree No. 44739-H, published on November 8, 2024, to update regulations on electronic receipts for tax purposes. The decree introduces new definitions and receipt types, including electronic purchase invoices for transactions with non-domestic suppliers and electronic payment receipts for documenting partial payments. Entities authorized to receive deductible donations are exempt from issuing electronic checks but must issue certificates for donations. Implementation will begin once updated technical guidelines are issued.

🇩🇴 Dominican Republic

Starting May 15, 2025, medium-sized taxpayers in the Dominican Republic will be required to issue and receive e-invoices for both B2B and B2C transactions.

🇸🇻 El Salvador

Starting January 1, 2025, VAT-registered businesses in El Salvador required to issue electronic documents must comply with the mandate to issue e-tickets for B2C transactions.

🇪🇪 Estonia

Starting July 2025, businesses in Estonia registered as e-invoice recipients will be entitled to request structured e-invoices from their suppliers for payments related to goods and services. The mandate, applicable to B2B transactions and utilizing the EN 16931 format, represents a significant step in Estonia’s digital invoicing efforts ahead of a planned mandatory e-invoicing rollout in January 2027.

🇩🇪 Germany

Germany’s e-invoicing journey will take a pivotal step in January 2025, requiring businesses to be able to receive e-invoices for domestic B2B transactions. The mandate applies to resident taxpayers and supports XRechnung or hybrid ZUGFeRD formats, marking the start of a phased approach to modernizing invoicing and enhancing digital compliance.

🇭🇺 Hungary

From January 1, 2025, Hungary will mandate e-invoicing for non-consumer transactions in the electricity and natural gas sectors. Applicable to B2B transactions, the regulation allows the use of various formats.

🇮🇳 India

Starting April 1, 2025, India will implement a 30-day time limit for reporting e-invoices on IRP portals for taxpayers with an annual aggregate turnover (AATO) of ₹10 crores and above. This restriction applies to all document types, including invoices, credit notes, and debit notes, requiring them to be reported within 30 days from the date of issuance.

🇮🇱 Israel

In January 2025, Israel will implement Phase 2 of its Israeli Invoicing requirements, mandating an allocation number for invoices exceeding NIS 20,000 (approximately EUR 4,900) before VAT. Applicable to B2B transactions for all authorized dealers, the requirement utilizes the JSON format and builds on Phase 1, extending the scope of covered transactions.

🇮🇹 Italy

From March 31, 2025, healthcare professionals in Italy will be required to issue electronic invoices to end consumers, following an extension from the original January 1, 2025 deadline. This mandate, using a centralized model and XML format, marks a significant change for the sector, which is currently prohibited from issuing e-invoicing due to privacy concerns.

🇱🇻 Latvia

From January 1, 2025, Latvia will mandate e-invoicing for transactions between businesses and the public sector. Resident taxpayers will be required to use the Peppol BIS 3.0 format. This marks the first phase of Latvia's e-invoicing rollout, with a B2B mandate planned for 2026.

🇲🇾 Malaysia

The six-month grace period for fines related to mandatory e-invoicing in Malaysia will end on February 1, 2025. Introduced on August 1, 2024, this grace period allowed businesses additional time to align with the new regulations without facing penalties.

In 2025, Malaysia’s phased e-invoicing rollout will continue. From January 1, 2025, businesses with a turnover of RM 25 million or more must implement e-invoicing. By July 1, 2025, the mandate will expand to include all remaining businesses undertaking commercial activities.

🇵🇾 Paraguay

Starting January 1, 2025, newly registered legal entities in Paraguay will be required to issue tax invoices electronically, except for withholding invoices. These entities can use the E-Kuatia´i System, a free e-invoicing platform provided by the tax authority, or the E-Kuatia System, designed for medium and large companies opting for their own development or third-party software providers.

🇷🇴 Romania

Romania will require mandatory B2C e-invoicing for resident taxpayers starting January 2025. Using a clearance model and the XML-based RO_CIUS format, this builds on the existing B2B e-invoicing system, expanding compliance to end consumer invoices.

🇸🇦 Saudi Arabia

Throughout 2025, Saudi Arabia will continue its phased rollout of mandatory e-invoicing, gradually expanding the scope to include taxpayers with progressively lower turnover thresholds. The mandate applies to both B2B and B2C transactions, requiring pre-clearance for standard tax invoices and digital reporting for simplified tax invoices. Resident taxpayers must comply using the UBL 2.1 KSA or hybrid format as the Kingdom advances toward full e-invoicing adoption.

🇸🇬 Singapore

Starting November 1, 2025, newly incorporated companies in Singapore that voluntarily register for GST will be required to comply with the country’s digital reporting mandate. This includes using the InvoiceNow platform, based on the Peppol 5-corner model, to transmit invoice data directly to the tax authority. The mandate, applicable to B2B transactions, is part of a phased implementation plan leading up to broader compliance requirements in 2026.

🇪🇸 Spain

In July 2025, Spain's Verifactu regulation will take effect, requiring certified billing systems to ensure the integrity, traceability, and unalterability of invoices. Applicable to both B2B and B2C transactions for resident taxpayers, the regulation mandates the use of XML/PDF formats with QR codes and includes real-time reporting for Verifactu users. A potential delay until 2026 may provide taxpayers and billing systems with more time to comply.

🇦🇪 United Arab Emirates (UAE)

Legislation for the UAE’s mandatory e-invoicing system is expected to be finalized by Q2 2025, requiring taxpayers to prepare for compliance. The system, which mandates e-invoicing for B2B and B2G transactions, will operate under a decentralized Peppol network model. Resident taxpayers will need to adopt Peppol BIS format with Peppol International (PINT) as the data dictionary, ensuring automated invoice exchange and tax reporting ahead of Phase 1 in July 2026.

🇺🇾 Uruguay

From January 1, 2025, Uruguay will require all VAT taxpayers — except for a few specific exemptions (including Non-Resident Income Tax taxpayers) — to join the Electronic Invoicing regime. Taxpayers must acquire the status of electronic issuer upon registering or restarting activities. This milestone applies to both B2B and B2C transactions utilizing the XML format.

VAT/GST Rate Changes in 2025

Below, we’ve outlined the VAT/GST rate changes that have already been announced for 2025. We expect that additional changes will be rolled out throughout the year, so keep an eye on blog for breaking updates.

🇪🇪Estonia

As of July 1, 2025, Estonia will increase the standard VAT rate from 22% to 24%.

🇬🇼Guinea-Bissau

Guinea-Bissau has announced January 1, 2025, as the effective date for implementing the VAT regime. The VAT Act was approved on February 25, 2022, but the implementation was being postponed until 2025. The standard VAT rate will be 19%, the reduced rate will be 10%, and for businesses under the simplified regime, 5% VAT is chargeable.

• Businesses below FCFA 10,000,000 would be exempt from VAT.
• The simplified VAT regime applies to businesses with a turnover equal to or greater than FCFA 10,000,000 but below FCFA 40,000,000 in the previous calendar year.
• The general rules apply to businesses with a turnover equal to or greater than FCFA 40,000,000 in the previous calendar year.

🇮🇩Indonesia

Indonesia will increase the standard VAT rate from 11% to 12% as of January 1, 2025. The increase was adopted by Law No. 7 of 2021. According to the Indonesian Government’s announcement of December 31, 2024, the 12% rate will only apply to luxury goods and services, while others remain at 11%.

🇮🇱Israel

Israel will increase its standard VAT rate from 17% to 18% as of January 1, 2025.

🇲🇪Montenegro

As of January 1, 2025, Montenegro will introduce a new 15% reduced VAT rate.

🇸🇰Slovakia

As of January 1, 2025, Slovakia will increase its standard VAT rate from 20% to 23%. In addition, a new reduced rate of 19% and a super reduced rate of 5% will be introduced, and the previously applied 10% reduced rate will be eliminated. The changes were approved on September 24, 2024, and signed by the president on October 18, 2024.

🇹🇭Thailand

Thailand extended the application of the 7% VAT rate until September 30, 2025.

🇻🇳Vietnam

Vietnam extended the application of the reduced rate of 8% (instead of 10%) until June 30, 2025. Based on this, 10% VAT will be chargeable as of July 1, 2025, if the National Assembly does not extend this further.

In addition, according to the new VAT Law No. 48/2024/QH15, as of July 1, 2025, the VAT rate for foreign suppliers without a permanent establishment in Vietnam who engage in e-commerce and digital business activities with organizations and individuals within the country will rise from 5% to 10%.

Digital Services & Marketplace Rules

Below, we’ve outlined the key digital services and marketplace rules-related updates for 2025.

🇨🇱Chile

Effective January 1, 2025, Chile implements new VAT regulations impacting online marketplaces and remote sellers. Under the "deemed supplier" rule, digital platforms facilitating sales to Chilean consumers will be responsible for collecting and remitting VAT, regardless of the seller's location. Additionally, the VAT exemption for low-value goods (previously under USD 41) will be removed, requiring VAT to be applied to all B2C imports, including low-value items. These changes aim to enhance tax compliance and align with global e-commerce taxation trends.

🇨🇭Switzerland

Starting January 1, 2025, Switzerland will implement new VAT rules targeting online marketplaces. Under the "deemed supplier" rule, platforms facilitating the sale of goods to Swiss customers will be responsible for collecting and remitting VAT, regardless of the seller's location. Platforms with annual turnover exceeding CHF 100,000 from low-value consignments must register for Swiss VAT and charge VAT on all domestic deliveries.

The Federal Council passed the amendment to the VAT Act on June 16, 2023, and on August 21, 2024, the Federal Council adopted a partial revision of the VAT Ordinance.

🇱🇮Lichtenstein

Liechtenstein is introducing VAT liability for online marketplaces, new data-sharing obligations, and updated place-of-supply rules by Law No. 641.20. The changes will come into force on January 1, 2025.

Find out more information the new VAT regulations for online platforms.

🇯🇵Japan

Japan is imposing obligations on digital platforms to collect and remit 10% Consumption Tax for transactions carried out by non-resident providers through their platforms. Due to the recent publication of the Japanese Tax Agency, as of April 1, 2025, designated digital platforms must collect and remit consumption tax on electronically supplied services fulfilled through their platforms. The Japanese Tax Authority will announce the designated specific platform business operators until December 31, 2024.

Find more information about how Digital Platforms are Deemed Suppliers for Consumption Tax in Japan.

🇵🇭Philippines

The Philippines introduces 12% VAT on nonresident digital service providers and marketplace rules. Republic Act 12023 is already effective, and the Implementing Regulation is in draft status. Nonresident digital service providers will be subject to VAT after 120 days from the effective implementation of the rules and regulations, which is expected around May 2025.

🇱🇰Sri Lanka

Sri Lanka is considering introducing 18% VAT on cross-border digital services without a registration threshold. The proposal is still pending; however, the initial plan was to implement these rules by April 2025.

🇪🇺European Union

New EU Place of Supply Rules for Live Virtual Events

As of January 1, 2025, the taxation rules for live virtual events change within the EU. Going forward, for B2C supplies to private customers in the EU, suppliers will need to charge VAT based on where the customer resides, while before 2025, VAT did not need to be charged in the customer's country.

Find out more information about the new EU place of supply rules for live virtual events.

The EU’s SME Scheme Implementation in 2025

The EU is introducing measures to simplify VAT compliance for small and medium-sized enterprises (SMEs) by offering VAT exemptions and relieving them of the obligation to file VAT returns across the EU. SMEs will qualify for VAT exemption if they remain under a specific threshold. Member States can set their own thresholds, but these cannot exceed EUR 85,000 (or the equivalent in national currency).

To qualify for the SME Scheme, businesses must meet two conditions:

• The total EU-wide turnover must not exceed EUR 100,000.
• The business’s sales in Member States other than its country of establishment must remain below the VAT exemption threshold set by those Member States.

For further information, please refer to the European Union’s website.

🇺🇸United States

United States

For detailed information on the US sales and use tax rate changes effective January 1, 2025, please refer to our comprehensive article here. We expect that additional changes will be rolled out throughout the year, so keep an eye on our blog for breaking updates.

Alaska

Effective January 1, 2025, the Alaska Remote Seller Sales Tax Commission will require registration only for businesses with over $100,000 in gross sales, eliminating the 200-transaction threshold for economic nexus.

Tax ID validation

🇺🇸United States

The IRS has once again delayed the implementation of the $600 reporting threshold for Form 1099-K. This latest delay, announced on November 26, 2024, will push back the stricter reporting requirements for third-party settlement organizations (TPSOs) and participating payees.

• IRS officially delayed the effective date of the $600 threshold for calendar years 2024 and 2025.
• The $5,000 threshold is implemented for calendar year 2024.
• The $2,500 threshold is implemented for calendar year 2025.
• The $600 threshold will be effective for calendar year 2026 and after.

Find out more information about the delays to the $600 Form 1099-K.

🇪🇬Egypt

Businesses selling in Egypt will be required to validate their B2B buyers' Tax Registration Number (TRN) alongside a new identifier, the Unique Identification Number (UIN). This requirement is essential to justify zero-rating transactions under the reverse charge VAT mechanism, aiming to tighten VAT compliance.

Find out more information about tax ID validation for B2B sales.

Get detailed instructions for businesses affected by new tax regulations for Digital Services in Egypt.

Watch our webinar about the new B2B Tax ID Validation rules in Egypt.

Data Sharing - Digital Platform Tax Information Reporting

Below, we’ve outlined the key data sharing and digital platform tax information reporting updates for 2025.

🇨🇦Canada

Part XX Reporting Rules for Digital Platform Operators, necessitates that operators of digital platforms collect and report detailed information on certain sellers to the CRA. For those familiar with the rules, they are essentially Canada’s version of the EU’s DAC7 rules.

Affected businesses need to submit their reports by January 31, 2025

You can find more information about the new reporting rules for digital platform operators in Canada.

🇳🇿New Zealand

New Zealand has also adopted the OECD Model Rules for Digital Platform Reporting.

Key Dates:

• Reporting period: Year ending December 31, 2024
• Submission deadline: Feb 7, 2025

Who & What is Impacted?

• Affected Parties: Platform Operators resident in New Zealand
• Relevant Activities: Rental of immovable property, Personal services.
• The optional extended standard for the sale of goods and vehicle rentals has not been implemented but may be considered in the future.

Penalties for Non-Compliance: Penalties start at NZ$300 per missed requirement (capped at NZ$10,000) and rise for repeated or careless non-compliance (up to NZ$100,000 annually).

Platform operators should ensure robust due diligence procedures by validating Sellers' details and registering for a DPI account with Inland Revenue to be able to file their reports.

Returns

Below, we’ve outlined the key tax return updates for 2025.

🇦🇺Australia

Australia requires GST-registered businesses to lodge an annual GST return for the 2024–25 financial year if it has received one of the following on or before June 30, 2024:

• Top 100 GST Assurance Report
• Top 1,000 Combined Assurance Review report with a GST assurance rating; or
• Top 1,000 GST Streamlined Assurance Review

Taxpayers who received a GST assurance review report on or before June 30, 2024, will need to lodge a return annually from the 2024–25 financial year about seven months after their year-end.

🇧🇪Belgium

Belgium extends the deadline for quarterly VAT returns submission from January 2025. This means that the returns will be due by the 25th day of the following month. The deadline for monthly taxpayers will remain the same, meaning that the submission and payment should be made by the 20th day of the following month. For more details, check the official VAT calendar.

🇭🇺Hungary

Starting in January 2025, the Hungarian Tax Authority (NAV) will start to regularly compare the data from the real-time invoice reporting system (Online Számla) with the information on the VAT returns, in particular, the M sheets. The amendment is available in Hungarian under Section 133.

🇳🇴Norway

Norway introduced a new form and documentation for SAF-T. SAF-T Financial 1.30 is required from January 2025; however, taxpayers can already use it.

🇷🇴Romania

Non-resident taxpayers registered for VAT are required to submit SAF-T reports in Romania starting from January 2025. As a measure of simplification, non-established businesses are subject to simplified reporting requirements.

🇨🇭Switzerland

​​Switzerland introduced the annual VAT reporting frequency, which came into effect in January 2025. The possibility of submitting a VAT return on an annual basis offers greater flexibility and efficiency for businesses, particularly small and medium-sized enterprises (SMEs).