What are the major global VAT and GST changes in 2026?

In 2026, countries like Bhutan, Liberia, Ghana, and EU states implemented new VAT or GST systems, adjusted rates, or restructured levies affecting cross-border businesses.

Which countries introduced entirely new GST or VAT systems in 2026?

Bhutan implemented a new GST system at a 5% rate, while Liberia announced plans to replace its GST with a VAT system starting January 1, 2027.

How did Ghana's VAT system change in 2026?

Ghana restructured its VAT, removing the COVID-19 Health Recovery Levy, treating NHIL and GETFund levies as deductible inputs, while maintaining a statutory VAT rate of 15%.

Which EU countries made VAT rate adjustments in 2026?

Greece, Finland, Lithuania, Portugal, Slovakia, Germany, and the Netherlands updated their VAT rates, with reductions in some regions and increases in others.

Why are these indirect tax changes important for businesses?

Businesses engaged in cross-border activities must adapt to evolving VAT and GST systems to ensure compliance, optimize tax planning, and manage operational risks.

How should companies respond to these 2026 VAT and GST changes?

Companies should monitor rate updates, review applicable levies, update systems, and proactively plan taxation strategies to stay compliant and avoid penalties.

Global VAT & GST Updates 2026: Key Indirect Tax Changes

The beginning of 2026 brought many changes to the indirect tax systems across the globe. More specifically, from January 1, 2026, in many countries worldwide, businesses engaged in cross-border activities, including digital service providers and e-commerce sellers, face new VAT or GST rates, or a completely new indirect tax system. The main drivers behind these changes are broader fiscal strategies, budgetary realignments, or ongoing reforms of national indirect tax systems.

Overview of Key Indirect Tax Updates

One of the most influential changes happened in Bhutan, which, on January 1, implemented a new GST system with a 5% standard GST rate, replacing the Sales Tax regime. Liberia is another country that announced the intention to replace the current GST regime with a new VAT regime. While the implementation date is set for January 1, 2027, the GST rate increased from 12% to 13% on January 1 as part of a gradual shift toward a complete VAT system.

Ghana also significantly changed its VAT regulations by restructuring the tax rates. The rate restructuring includes the abolition of the COVID-19 Health Recovery Levy, and treating the National Health Insurance Levy (NHIL) and the Ghana Education Trust Fund (GETFund) levy as deductible input taxes. Furthermore, the statutory VAT rate remains unchanged at 15%. However, both the NHIL and GETFund levies continue to apply at 2.5% each, resulting in a combined tax burden on taxable supplies of 20% in 2026.

Zimbabwe increased its standard VAT rate by 0.5%, from 15% to 15.5%, as did Malawi, where the standard VAT rate is 17.5%, a 1% increase from 16.5%.

EU countries also made considerable changes to their VAT rates. Greece reduced applicable VAT rates to specific islands and border regions. Therefore, under specific conditions, a 30% decrease in the applicable VAT rates for the islands of the North Aegean, the Evros Regional Unit of Samothraki, and the Dodecanese Prefecture has been approved. In contrast, the special VAT reduction for the island of Leros expired on December 31, 2025.

Finland is another EU country that changed its VAT rate, specifically lowering the reduced VAT rate applicable to selected goods and services, including food, pharmaceuticals, restaurant and catering services, and passenger transport from 14% to 13.5%. On the opposite side, Lithuania increased the reduced VAT rate from 9% to 12% and also made changes regarding which rate applies to the supply of certain goods and services. Other EU countries that changed their applicable VAT rates include Portugal, Slovakia, Germany, and the Netherlands.

Conclusion

Taken together, the indirect tax changes introduced at the start of 2026, ranging from the introduction of entirely new GST or VAT systems to rate increases, restructurings, and targeted regional reliefs, for businesses operating across borders, reinforce the need for constant vigilance and proactive tax governance. Moreover, as VAT and GST systems continue to evolve, the pressure on businesses to monitor and adapt their systems and to strategically plan taxation has emerged as a critical compliance matter.

Source: VATabout - Bhutan to Implement 5% GST in 2026: Key Rules for Non-Residents, VATabout - Liberia’s Shift From GST to VAT: Key 2026–2027 Updates, VATabout - Ghana VAT Reform 2026: Higher Thresholds, Lower Rates, VATabout - Zimbabwe 2026 Tax Reforms: VAT Rise and Digital Services Tax, Deloitte, VATabout - Finland 2026 VAT & Tax Changes: Digital Shift & Crypto Rules, VATabout - Lithuania to Increase Reduced VAT Rate to 12% in 2026 | VAT Law Amendments Update, VATabout - Portugal 2026 Budget: Key VAT and E-Invoicing Updates, German Ministry of Finance, BDO