The latest issue of BDO Indirect Tax News highlights several significant changes in the areas of indirect taxes, customs duties, and electronic invoicing. Alongside the ongoing digitization of tax systems worldwide, new trade agreements, customs measures, and court rulings that may impact international business and supply chains are particularly noteworthy.

Particular attention has been drawn to the EU-US agreement on tariff reductions, as well as the ongoing expansion of mandatory electronic invoicing in many jurisdictions. At the same time, EU courts have issued important rulings in the area of VAT concerning tax deductions, cost-sharing exemptions, and “standstill clause” rules.

 

EU and the U.S.: Progress in Trade Relations and Customs Rules

The European Parliament has moved the EU-US trade agreement to the next stage of negotiations

On March 26, 2026, the European Parliament conditionally approved legislative proposals implementing the tariff reductions resulting from the EU-US trade agreement concluded in Turnberry, Scotland, in 2025.

The agreement provides for the elimination of most tariffs on selected industrial and agricultural products from the US.
The EU–US Framework Agreement provides for a 15% tariff on most exports from the EU to the US, while also reducing or eliminating tariffs on selected US goods.

The Parliament also added several safeguard mechanisms:

• the so-called “sunrise clause,” which makes the agreement’s effectiveness contingent on the U.S. fulfilling its commitments,
• a “suspension clause,” allowing the EU to suspend benefits in the event of new U.S. tariffs,
• and a “sunset clause,” under which the agreement is set to expire on March 31, 2028.

Negotiations with the Council of the EU will follow, with a final vote expected within the next month.
 

New U.S. tariffs on steel, aluminum, copper, and the pharmaceutical sector

At the same time, the United States announced new tariff measures under Section 232 of the Trade Expansion Act.

Starting in April 2026, tariffs ranging from 25% to 50% will be imposed on steel, aluminum, and copper, including a broader range of derivative products.
New 100% tariffs are also being introduced on selected patented pharmaceutical products and their ingredients.

• Tariffs on steel, aluminum, and copper will take effect on April 6, 2026.
• Tariffs on selected patented pharmaceutical products and their ingredients are set to take effect on July 31, 2026, for large companies, and on September 29, 2026, for other companies.

 

Electronic invoicing continues its global expansion

Electronic invoicing remains one of the most significant areas of tax reform. Several countries are introducing new requirements or expanding existing systems.
 

Africa is significantly accelerating its digital transformation

Four African countries - Botswana, Gabon, Nigeria, and The Gambia - are preparing or implementing new electronic invoicing systems.

• Botswana will introduce mandatory electronic invoicing for VAT payers starting in April 2026.
• Starting July 1, 2026, Gabon will require electronic invoices as the only accepted document for input VAT deduction.
• Nigeria will begin implementing the system in April 2026 for large taxpayers with a turnover exceeding 5 billion NGN.
• The Gambia plans to introduce the system, though no timeline has been announced.

Ireland and ViDA

The Irish tax authorities have confirmed the criteria for the first phase of implementing the ViDA rules on electronic invoicing and reporting.

Starting November 1, 2028, large VAT-registered companies will be required to issue electronic invoices and report data for domestic B2B transactions. At the same time, all businesses in the country will need to be able to receive structured e-invoices.
 

Singapore and direct reporting to the tax authorities

Singapore is accelerating the digitization of the GST through GST InvoiceNow, which will require GST-registered businesses to transmit invoice data directly to the tax authorities.
 

Spain and the UAE are preparing their next steps

Spain has adopted a new decree establishing the technical and operational framework for future mandatory B2B electronic invoicing. Meanwhile, the United Arab Emirates continues to issue methodological guidelines ahead of the launch of the e-invoicing pilot phase in the summer of 2026.

 

Court rulings offer new interpretations of VAT

The CJEU clarifies the rules on VAT deductionsr

In several rulings, the Court of Justice of the European Union has addressed the following issues:

• the scope of the “standstill clause,”
• the right to deduct input VAT when an invoice is received after the transaction has taken place but before the deadline for filing the tax return,
• and the limits of the exemption for cost-sharing groups.

More info.
 

France: Liability of Customs Agents

The French Supreme Court ruled on the joint liability of customs agents and curtailed administrative practices based on the presumption of indirect representation.

More info.
 

Spain: Holding Companies and VAT

The Spanish Supreme Court has issued two significant rulings concerning:

• the right to deduct VAT in the case of mixed holding companies,
• and the relationship between Spanish VAT and the equivalent tax in the Canary Islands.

More info.

Other significant changes around the world

 

The EU is ending the duty-free exemption for small shipments

Effective July 1, 2026, the duty-free allowance for small shipments valued at up to €150 will be abolished. A flat duty of €3 will be introduced for small shipments below this value.
 

Australia and the EU have signed a free trade agreement

Australia and the EU have signed a new free trade agreement under which 98% of Australian exports will enter the EU duty-free and most EU tariffs will be eliminated. The agreement is still subject to ratification.
 

The EU and India have concluded a trade agreement

On January 26, 2026, the EU and India signed a free trade agreement that provides for significant reductions and eliminations of tariffs.
 

Czech Republic: New VAT Refund Mechanism

The Czech Republic is introducing a new VAT refund mechanism that will allow non-EU entities to recover VAT on certain transactions without having to go through the traditional "refund claim" process.
 

Japan and France are expanding regulations on low-value shipments

Both France and Japan are extending their VAT/JCT rules to low-value imports. Japan also plans to extend platform taxation to goods starting in 2028.

Conclusion

The April issue of Indirect Tax News once again demonstrates that the field of indirect taxation is undergoing a significant transformation. The digitization of tax systems, new customs regimes, and a growing emphasis on reporting are fundamentally changing the way international trade operates as well as companies’ day-to-day tax processes.

For companies operating internationally, it will be crucial to monitor developments in electronic invoicing, customs measures between the EU and the US, and new rules regarding VAT and digital services.

You can read more detailed information about these and other changes in the field of indirect taxes at this link.


 

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