The OECD has published its Tax Policy Reforms 2026 report. It compares tax reforms introduced or announced in 2025 across 92 jurisdictions, including all OECD countries, and identifies major developments and broader trends.
Key Insights from the Report
The OECD notes that the 2025 tax policy environment differs from the years immediately following the COVID-19 pandemic and the 2022-23 energy crisis. Those crises led many countries to adopt similar measures in response to common economic pressures. By 2025, however, countries were pursuing more varied tax policies because of differences in their economic conditions, available fiscal space, and domestic priorities.
Some countries made only limited changes to their tax systems, particularly where they had already implemented significant reforms in 2023 and 2024. Others focused on supporting economic growth through targeted tax incentives rather than introducing broad-based tax increases. At the same time, many governments sought additional revenue through more narrowly targeted measures, including sector-specific corporate taxes such as surtaxes and higher excise taxes on products such as tobacco.
On indirect taxes, the OECD highlights that digitalization was one of the main drivers of VAT reform in 2025. As the digital economy expands, more countries are making non-resident suppliers and online platforms responsible for collecting and remitting VAT on sales to local consumers.
Other VAT reforms focused on reduced VAT rates, as numerous countries moved particular goods and services into or out of reduced-rate categories or changed the rates themselves. In some cases, governments simplified their VAT systems by consolidating reduced rates to make the system easier to administer, better target tax relief, and, in some cases, generate additional revenue.
The report also touches on the rapid global expansion of e-invoicing and digital continuous transactional reporting. The OECD notes that this trend is making VAT compliance increasingly complex for businesses operating across multiple countries. Countries have introduced different technical architectures, reporting frequencies, data formats, transaction requirements, and compliance procedures. As a result, no single global approach works for all businesses.
Conclusion
The eleventh edition of the OECD's Tax Policy Reforms report underlines a shift toward more tailored national tax policies alongside an accelerating move toward digital tax administration. While digital VAT reforms and e-invoicing enhance tax collection and transparency for tax authorities, the resulting fragmentation of global standards creates significant compliance challenges. For multinational businesses, navigating these varied rules will require flexible tax technologies and proactive, localized compliance strategies.
