What changed for Egypt VAT?

On 23 June 2026 Egypt's House of Representatives approved a VAT Law amendment package (the second phase of the tax-facilitation initiative): VAT on medical equipment is cut from 14% to 5%, inputs and parts for kidney-dialysis machines are fully exempted, the VAT-suspension period on imported industrial machinery is extended from two to four years, and VAT-refund turnaround is shortened from six months to four (three months for enterprises with turnover below EGP 20 million). (Source: State Information Service (Egypt).)

What changed for United States (North Carolina) Sales & Use Tax?

The North Carolina Department of Revenue announced on 24 June 2026 that Mecklenburg County will impose an additional 1% local sales and use tax from 1 July 2026, raising the combined state-and-local rate in the county from 7.25% to 8.25%. The levy follows a voter referendum on 4 November 2025 and funds public transit. Effective Jul 1, 2026. (Source: North Carolina Department of Revenue.)

What changed for United States (Colorado) Retail Delivery Fee?

Colorado's state Retail Delivery Fee rises from USD 0.28 to USD 0.31 per retail delivery from 1 July 2026 — its annual inflation adjustment — and applies at the new rate through June 2027. Effective Jul 1, 2026. (Source: Colorado Department of Revenue.)

What changed for United States (Illinois) Sales Tax?

From 1 July 2026 numerous Illinois municipalities and counties impose a new local 1% grocery occupation tax — replacing the statewide 1% grocery tax abolished on 1 January 2026 — alongside a wider wave of local sales-tax rate changes detailed in Illinois Department of Revenue bulletins FY 2026-25 and FY 2026-26-A. The Illinois state base rate is unchanged at 6.25%. Effective Jul 1, 2026. (Source: Illinois Department of Revenue.)

Last Week in Taxes: Egypt cuts medical VAT as a fresh 1 July digital-tax and e-invoicing wave lands (Issue #12)

Q: What changed for United Arab Emirates VAT?

The UAE opened the pilot phase of its national e-invoicing system on 1 July 2026, with a selected Taxpayer Working Group and voluntary adoption available to any business from that date. The Peppol-based five-corner (PINT AE) model, framed by Ministerial Decisions No. 243 and No. 244 of 2025, becomes mandatory from 1 January 2027 for businesses with annual revenue of AED 50 million or more; the deadline to appoint an accredited service provider was extended to 30 October 2026. Effective Jul 1, 2026. (Source: Deloitte Middle East (citing UAE Ministry of Finance).)

Q: What changed for Sri Lanka VAT?

From 1 July 2026 Sri Lanka applies 18% VAT to digital services supplied by non-resident providers to local consumers (after two earlier postponements); a non-resident provider must register once its supplies exceed LKR 36 million in any 12 months or LKR 9 million in a taxable period. The same amendments raise VAT on financial services from 18% to 20.5% and lower the general VAT registration threshold to the LKR 36 million / LKR 9 million levels. The standard VAT rate stays at 18%. Effective Jul 1, 2026. (Source: Inland Revenue Department, Sri Lanka.)

Q: What changed for Argentina VAT?

Argentina's tax authority ARCA reorganised the electronic-invoicing regime through General Resolution 5866/2026, effective 1 July 2026, superseding RG 5824. It retains the optional monthly electronic settlement (Liquidacion Electronica Mensual), updates final-consumer identification rules (full ID required at or above ARS 10,000,000), and sets a staggered rollout for insurance and financial-sector operations from September 2026 through March 2027. Effective Jul 1, 2026. (Source: Consejo Profesional de Ciencias Economicas de Cordoba.)

Q: What changed for Brazil CBS/IBS (VAT)?

Under Brazil's dual-VAT reform (Complementary Law 214/2025), the 2026 pilot runs at a combined 1% test rate (0.9% CBS + 0.1% IBS). Per Joint Act RFB/CGIBS No. 01/2025, penalties for omitting the new IBS and CBS fields from electronic fiscal documents (NF-e and others) begin on 1 August 2026 — up to 1% of the transaction value per tax. Effective Aug 1, 2026. (Source: Presidencia da Republica (Planalto).)

In brief — a quieter, post-budget week whose news is a rate cut and the 1 July go-live boundary:

Egypt — Parliament approved a VAT amendment package on 23 June 2026, cutting medical-equipment VAT from 14% to 5% and speeding refunds.
United Arab Emirates — The national e-invoicing pilot opened on 1 July 2026 (voluntary), ahead of the mandatory 1 January 2027 phase for AED 50m+ businesses.
Sri Lanka — From 1 July 2026, 18% VAT applies to non-resident digital services and financial-services VAT rises to 20.5%.
United States — Mecklenburg County (North Carolina) adds 1% to sales tax; Colorado lifts its retail-delivery fee to $0.31; Illinois localities add a new 1% grocery occupation tax — all from 1 July.
Argentina — ARCA’s General Resolution 5866/2026 reorganises the e-invoicing regime from 1 July 2026, replacing RG 5824.
Brazil — Penalties for omitting the new IBS/CBS fields from fiscal documents begin 1 August 2026, as the dual-VAT pilot runs at a 1% test rate.

This issue reports what was announced or enacted in the window (roughly 23 June–2 July 2026), then confirms the biggest changes going live at the 1 July fiscal-year boundary that earlier issues had flagged as upcoming. Each fact is tied to its official source.

Announced this week

Africa & Middle East

Egypt — VAT: medical-equipment rate cut 14% → 5%, faster refunds

On 23 June 2026 Egypt’s House of Representatives approved a package of VAT Law amendments — the second phase of the government’s tax-facilitation initiative. VAT on medical equipment falls from 14% to 5%, the inputs and parts of kidney-dialysis machines are fully exempted, the VAT-suspension window on imported industrial machinery is extended from two to four years, and VAT-refund turnaround is shortened from six months to four (three months for enterprises with turnover below EGP 20 million). (State Information Service)

What it means: This is a targeted, sector-focused rate cut, not a change to Egypt’s 14% standard rate. The healthcare relief and the faster-refund and longer-machinery-suspension measures are aimed at industrial liquidity and medical-supply costs; watch for the gazette to confirm the effective date.

United Arab Emirates — e-invoicing: national pilot opens 1 July

The UAE opened the pilot phase of its national e-invoicing system on 1 July 2026, with a selected Taxpayer Working Group and voluntary adoption open to any business from that date. The Peppol-based five-corner (PINT AE) model — framed by Ministerial Decisions No. 243 and No. 244 of 2025 — becomes mandatory from 1 January 2027 for businesses with annual revenue of AED 50 million or more; the deadline to appoint an accredited service provider was extended to 30 October 2026. (Deloitte Middle East, citing the Ministry of Finance)

What it means: The pilot lets AED 50m+ businesses and their service providers rehearse the five-corner flow before the 2027 mandate. It also confirms the UAE is following the Peppol CTC model now common across the Gulf and Europe.

Asia-Pacific & South Asia

Sri Lanka — VAT: non-resident digital services taxed; financial-services rate to 20.5%

From 1 July 2026 Sri Lanka applies 18% VAT to digital services supplied by non-resident providers to local consumers, after two earlier postponements. A non-resident provider must register once its supplies exceed LKR 36 million in any 12 months or LKR 9 million in a taxable period. The same amendments raise VAT on financial services from 18% to 20.5% and lower the general VAT registration threshold to those LKR 36m / LKR 9m levels. The standard VAT rate stays at 18%. (Inland Revenue Department)

What it means: Sri Lanka joins the global wave taxing non-resident digital supplies, and the financial-services increase consolidates a previously separate levy into the VAT rate — a real cost rise for banks and insurers.

North America

United States (North Carolina) — sales tax: Mecklenburg County +1% from 1 July

The North Carolina Department of Revenue announced on 24 June 2026 that Mecklenburg County (Charlotte) will impose an additional 1% local sales and use tax from 1 July 2026, taking the combined state-and-local rate in the county from 7.25% to 8.25%. The levy follows a voter referendum on 4 November 2025 and funds public transit. (NC Department of Revenue)

United States (Colorado & Illinois) — the 1 July local wave

Colorado’s state Retail Delivery Fee rises from $0.28 to $0.31 per delivery from 1 July 2026 (its annual inflation adjustment) (Colorado DOR). In Illinois, numerous municipalities and counties introduce a new local 1% grocery occupation tax from 1 July — replacing the statewide 1% grocery tax abolished on 1 January 2026 — plus a broader set of local rate changes, with the state base rate unchanged at 6.25% (Illinois DOR, Bulletin FY 2026-25).

What it means: US indirect-tax change clusters at 1 July because it is the fiscal-year start for most states. These are local, not federal, adjustments — but for remote sellers they change nexus-driven collection rates and, in Illinois, reintroduce a grocery tax at the municipal level that the state had removed.

Latin America

Argentina — e-invoicing: ARCA reorganises the regime (RG 5866/2026)

Argentina’s tax authority ARCA reorganised the electronic-invoicing regime through General Resolution 5866/2026, effective 1 July 2026, superseding RG 5824. It retains the optional monthly electronic settlement (Liquidación Electrónica Mensual), updates final-consumer identification rules (full ID required at or above ARS 10,000,000), and sets a staggered rollout for insurance and financial-sector operations from September 2026 through March 2027. (Consejo Profesional de Ciencias Económicas de Córdoba)

Brazil — CBS/IBS: penalties for missing document fields begin 1 August

Under Brazil’s dual-VAT reform (Complementary Law 214/2025), the 2026 transition pilot runs at a combined 1% test rate (0.9% CBS + 0.1% IBS). Per Joint Act RFB/CGIBS No. 01/2025, penalties for omitting the new IBS and CBS fields from electronic fiscal documents (NF-e and others) begin on 1 August 2026 — up to 1% of the transaction value per tax. (Planalto — LC 214/2025)

What it means: The 1% pilot rate is symbolic, but the August penalty date makes IBS/CBS field population a real 2026 compliance obligation — the first hard deadline in Brazil’s multi-year VAT transition.

Also live from 1 July

Several changes flagged in earlier issues as upcoming took effect at the 1 July boundary and are now confirmed in force:

European Union — 1 July 2026: the €150 customs-duty exemption for low-value consignments is abolished and a temporary flat €3 customs duty per item applies (to 1 July 2028). (European Commission)
Ireland — 1 July 2026: the 9% second-reduced VAT rate returns for restaurant, catering, hot-takeaway food and hairdressing (made permanent by Finance Act 2025). (Revenue Commissioners)
Saudi Arabia — 30 June 2026: ZATCA Wave 24 of the Phase-2 integration mandate (VAT revenue over SAR 375,000) reached its integration deadline, with full enforcement from 1 July. (ZATCA)
Nigeria — 1 July 2026: the Nigeria Revenue Service B2B e-invoicing / B2C e-reporting mandate advances to its next taxpayer wave, with a six-month penalty soft-landing. (EY, citing FIRS/NRS)

Themes this week

The news is thin because the budget season is over. After a run of mid-year Finance Acts, the window’s only major announcement is Egypt’s targeted medical-VAT cut — the rest of the week’s weight sits at the 1 July effective-date boundary.
Non-resident digital services keep widening. Sri Lanka’s 18% VAT on foreign digital supplies is the latest addition to a list that already spans Kenya, Azerbaijan, DR Congo and Vietnam in recent issues.
E-invoicing is now about go-lives, not announcements. The UAE pilot, Argentina’s RG 5866 overhaul, Nigeria’s next wave and Saudi Arabia’s Wave 24 enforcement all landed at 1 July — the build-out is shifting from legislation to operation.
US local rates move on the fiscal-year clock. North Carolina, Colorado and Illinois all changed rates or fees on 1 July, a reminder that in the US the indirect-tax calendar is county-by-county, not national.

Sources

Egypt — State Information Service, VAT reform package: https://sis.gov.eg/en/media-center/news/egypt-passes-vat-reform-package-to-support-industry-healthcare-and-investment/
Egypt — Daily News Egypt, VAT law amendments (medical device 5%): https://www.dailynewsegypt.com/2026/06/23/egypts-parliament-approves-vat-law-amendments-cuts-medical-device-tax-to-5/
United Arab Emirates — Deloitte Middle East (Ministerial Decisions 243 & 244 of 2025): https://www.deloitte.com/middle-east/en/services/tax/perspectives/release-of-uae-einvoicing-legislation.html
United Arab Emirates — KPMG (UAE MoF e-invoicing framework): https://kpmg.com/us/en/taxnewsflash/news/2025/10/uae-framework-scope-implementation-e-invoicing-system.html
Sri Lanka — Inland Revenue Department, VAT: https://www.ird.gov.lk/en/type%20of%20taxes/sitepages/value%20added%20tax%20(vat).aspx
Sri Lanka — KPMG, VAT on non-resident digital services from 1 July 2026: https://kpmg.com/us/en/taxnewsflash/news/2026/05/sri-lanka-vat-digital-services-amendments.html
United States (North Carolina) — NC Department of Revenue, Mecklenburg County +1%: https://www.ncdor.gov/news/press-releases/2026/06/24/mecklenburg-county-impose-additional-one-percent-sales-tax-beginning-july-1
United States (Colorado) — Colorado DOR, Retail Delivery Fee rates: https://tax.colorado.gov/retail-delivery-fee-rates
United States (Illinois) — Illinois DOR, Bulletin FY 2026-25 (grocery occupation tax): https://tax.illinois.gov/research/publications/bulletins/fy-2026-25.html
Argentina — CPCE Córdoba, RG 5866/2026 e-invoicing reorganisation: https://web.cpcecba.org.ar/arca-reorganiza-el-regimen-de-facturacion-electronica-con-la-rg-5866-a-partir-del-1-de-julio/
Brazil — Planalto, Complementary Law 214/2025 (CBS/IBS): https://www.planalto.gov.br/ccivil_03/leis/lcp/lcp214.htm
Brazil — Sovos, IBS & CBS go-live compliance deadlines: https://sovos.com/regulatory-updates/trr/brazil-ibs-cbs-go-live-compliance-deadlines-and-penalty-exposure/
European Union — European Commission, temporary flat fee on low-value imports: https://taxation-customs.ec.europa.eu/news/guidance-and-legal-text-temporary-flat-fee-low-value-imports-which-will-apply-until-1-july-2028-2026-06-08_en
Ireland — Revenue Commissioners, Finance Act 2025 VAT guidance notes: https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/vat/vat-guidance-notes-fa2025.pdf
Saudi Arabia — ZATCA, Wave 24 criteria: https://zatca.gov.sa/en/Pages/news_1426.aspx
Nigeria — EY (FIRS/NRS e-invoicing rollout): https://www.ey.com/en_gl/technical/tax-alerts/nigerias-federal-inland-revenue-service-rolls-out-e-invoicing-platform