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Issue 15 · · 10 min read

Sri Lanka's enacted VAT Act corrects the record, Kentucky drops its transaction test (Week of July 20, 2026)

Sri Lanka’s VAT (Amendment) Act No. 14 of 2026 reverses two figures earlier reported at bill stage; Kentucky simplifies economic nexus to a revenue-only test; Tanzania makes marketplaces the deemed supplier of electronic services.

This week's actions 17 action required · 1 plan ahead · 5 fyi

Action required

  • Bolivia — VAT · E-invoicing Update invoicing/ERP systems used for foreign-currency fiscal documents in Bolivia to capture the Banco Central de Bolivia's daily Tipo de Cambio Oficial, effective immediately (in force since 15 July 2026). InvoicingTax engineERP
  • Brazil — VAT · Registration Register any individual (pessoa fisica) who is a CBS/IBS taxpayer for a CNPJ before their next taxable CBS/IBS operation from July 2026. Tax engineReportingERP
  • Botswana — VAT · Digital services Non-resident suppliers of digital/remote services to Botswana customers should register with BURS without delay (registration takes effect from the start of the second tax period after eligibility) and prepare to charge 14% Botswana VAT four months after their registration date; confirm invoicing, VAT-number-collection, and monthly return/remittance (25th of month) processes are in place. Tax engineInvoicingE-commerceReporting
14 more action required
  • Botswana — VAT · Rate change Update POS/ERP tax codes and retail pricing for the revised zero-rated foodstuffs list without delay (effective 1 July 2026, notice issued 9 July 2026). POSERPTax engineE-commerce
  • Canada — sales tax · Update Reclassify grocery-store prepared foods, snack foods and carbonated beverages as RST-exempt in Manitoba POS/tax-engine configurations (in force since 1 July 2026). POSTax engineERPE-commerce
  • Congo (Brazzaville) — VAT · E-invoicing Complete SFEC platform interconnection and certified-invoice testing before the revised 1 August 2026 mandatory go-live. InvoicingERPTax enginePOS
    1 Aug 2026 The change →
  • Spain — VAT · Rate change Update Spanish motor-fuel VAT to 21% and apply the new phased Hydrocarbon Tax discounts (EUR 0.15/L Jul, EUR 0.10/L Aug, EUR 0.05/L Sep 2026, subject to CPI-trigger escalation) in POS, invoicing and tax-engine systems by 1 July 2026. POSTax engineInvoicingERP
  • France — VAT · E-invoicing Confirm platform (PDP) connection for reception (and emission if a grande entreprise/ETI) before 1 September 2026, and document compliance-trajectory evidence (platform contracts, tests, correspondence) to benefit from the no-automatic-sanction tolerance during the start-up phase. InvoicingERPTax engineReporting
    1 Sept 2026 Guide →
  • United Kingdom — VAT · Threshold Update CGS capital-item tracking (ERP/tax engine) to drop computer equipment from CGS monitoring and apply the GBP 600,000 land/buildings/civil-engineering threshold for expenditure incurred on or after 29 July 2026. ERPTax engineReporting
    29 Jul 2026 Guide →
  • Sri Lanka — VAT · Compliance Update invoicing templates/ERP systems to the mandatory Tax Invoice format (header, TIN fields, YYMMM_QQQQ_XXXXX serial numbering, dual dates, VAT value breakdown) by 1 July 2026, or apply for RAMIS Web API integration approval before that date to use the relaxed serial-number rule (integration due by 31 December 2026); non-compliant invoices risk rejection for input VAT credit. ERPInvoicingTax engineReporting
  • Sri Lanka — VAT · Digital services Correct the tax-changes record to LKR 60 million (12-month) / LKR 15 million (quarterly) for non-resident digital-service-provider VAT registration in Sri Lanka, effective 1 July 2026. Tax engineE-commerceInvoicing
  • Nepal — VAT · Compliance Ride-sharing platform operators and affiliated drivers in Nepal should review the new VAT collection guidelines under Finance Act 2083 (Section 7(1kha) of the VAT Act 2052) and update billing/remittance processes accordingly. Tax engineInvoicingE-commerce
    15 Jun 2026 The change →
  • Tanzania — VAT · Digital services Digital marketplaces/platforms facilitating electronic services to unregistered Tanzanian consumers must register and account for Tanzania VAT as deemed supplier from 1 July 2026. Tax engineE-commerceInvoicing
  • Tanzania — VAT · Update LPG distributors and licensed EV charging service providers importing qualifying equipment should apply the new VAT exemption from 1 July 2026. Tax engineCustoms
  • Tanzania — VAT · Compliance VAT withholding agents in Tanzania must begin filing the new monthly withholding VAT statement and apply the differentiated 15%/12% withholding rates from 1 July 2026. Tax engineReporting
  • United States (Kentucky) — sales tax · Threshold Remote sellers and marketplace facilitators with Kentucky sales must reassess nexus using the USD 100,000 revenue-only threshold (no transaction-count trigger) from 1 August 2026. Tax engineE-commerceReporting
  • United States (Kentucky) — sales tax · Rate change Businesses providing data brokering services to Kentucky customers must begin charging and remitting 6% sales tax from 1 August 2026. Tax engineERPInvoicing

Plan ahead

  • Russia — VAT · Threshold No immediate action — confirm final Federation Council/presidential signature before updating 2027 threshold-monitoring assumptions for RUB 20m vs RUB 15m. Tax engineERPReporting
    1 Jan 2027 The change →

FYI

  • Bolivia — VAT · Compliance No action — monitoring only. InvoicingTax engine
  • Chile — VAT · Compliance No action — monitoring only. Tax engineERPInvoicing
    23 Jun 2026 The change →
  • Italy — VAT · Compliance No action — monitoring only. ERPInvoicingTax engine
    1 Jul 2026
2 more fyi
  • Sri Lanka — VAT · Threshold No action -- supersedes W18's incorrect threshold-cut entry; correct the tax-changes record so downstream users are not told the threshold dropped to LKR 36 million. Tax engineERP
  • Sri Lanka — VAT · Update Correct the instrument identifier on all three W18 Sri Lanka VAT entries from 'Bill No. 31' / LK-OTHER-NO31-2026 to Bill No. 65, and record the enacted instrument as Value Added Tax (Amendment) Act, No. 14 of 2026 (certified 30 June 2026, gazetted 3 July 2026). Tax engineReporting

In brief — an enacted act corrects two figures this feed got wrong, and three countries put new obligations on marketplaces and remote sellers:

  • Sri Lanka — the VAT (Amendment) Act No. 14 of 2026 (certified 30 June 2026) left the general registration threshold untouched; the cut to LKR 36 million reported at bill stage was dropped before enactment.
  • Sri Lanka — the non-resident digital-services registration trigger was enacted at LKR 60 million per 12 months / LKR 15 million per quarter, not the bill’s LKR 36 million / LKR 9 million.
  • Sri Lanka — a revised mandatory VAT tax-invoice format and serial-numbering scheme applies from 1 July 2026 under Gazette Extraordinary No. 2481/22.
  • United States (Kentucky) — economic nexus becomes a USD 100,000 revenue-only test from 1 August 2026; the 200-transaction trigger is removed.
  • United States (Kentucky) — data brokering services become subject to the 6% sales and use tax from 1 August 2026.
  • Tanzania — digital marketplaces are deemed the supplier of electronic services to unregistered customers from 1 July 2026.
  • Tanzania — VAT withholding agents must file a monthly withholding statement, with rates split 15% on goods and 12% on services, from 1 July 2026.
  • Tanzania — LPG smart meters and electric-vehicle charging stations gain import VAT exemptions from 1 July 2026.
  • France — DGFiP published its start-up guide for the 1 September 2026 e-invoicing generalisation, setting out a tolerance for businesses on a documented compliance trajectory.
  • United Kingdom — the Capital Goods Scheme drops computers from scope and raises the land and buildings threshold from GBP 250,000 to GBP 600,000 from 29 July 2026.
  • Spain — motor-fuel VAT returned to 21% on 1 July 2026, with a phased Hydrocarbon Tax discount under Real Decreto-ley 18/2026.
  • Botswana — the zero-rated foodstuffs list was revised under the VAT Act 2026, in force 1 July 2026.
  • Botswana — the VAT (Remote Services) Regulations 2026 set out registration and invoicing mechanics for non-resident digital suppliers.
  • Congo-Brazzaville — mandatory SFEC certified e-invoicing was postponed from 1 July to 1 August 2026.
  • Brazil — individuals who are CBS/IBS taxpayers must register for a CNPJ from July 2026.
  • Bolivia — foreign-currency fiscal documents must record the Banco Central official exchange rate from 15 July 2026.
  • Bolivia — a new procedure allows cancellation of fiscal documents after the normal deadline.
  • Canada (Manitoba) — the Retail Sales Tax exemption widened to more grocery foods and beverages from 1 July 2026.
  • Chile — a voluntary full VAT-withholding regime for agricultural services took effect 23 June 2026.
  • Italy — the VAT split-payment derogation was extended to 30 June 2029.
  • Nepal — a VAT collection mechanism for ride-sharing platforms and drivers was introduced under Finance Act 2083.
  • Russia — the Duma approved freezing the small-business VAT-exemption threshold at RUB 20 million through 2028.

Announced this week

Europe

Italy — VAT: split payment extended to 2029

Council Implementing Decision (EU) 2026/1728 of 10 July 2026 amends Implementing Decision (EU) 2017/784, extending Italy’s authorisation to apply the split-payment mechanism from its 30 June 2026 expiry to 30 June 2029. (Official Journal of the European Union)

Spain — VAT: motor-fuel rate reverts to 21%

Real Decreto-ley 18/2026 (BOE, 30 June 2026) phases down the Hydrocarbon Tax cut on diesel and unleaded petrol — EUR 0.15 per litre in July, EUR 0.10 in August, EUR 0.05 in September 2026 — and lets the temporary 10% energy VAT rate set by RDL 7/2026 lapse on 30 June, reinstating it in August and September only on a CPI trigger.

The escalation clauses, and which supplies the 10% VAT rate actually covered →

Russia — VAT: small-business exemption threshold frozen

The State Duma approved amendments to Article 145 of the Tax Code (Bill No. 1256655-8) that would hold the VAT-exemption revenue threshold for simplified-regime small businesses at RUB 20 million through 2028, deferring the RUB 15 million and RUB 10 million steps to 2029 and 2030. This is Duma passage only, not law.

Why the proposed/enacted distinction matters here, and what to carry into 2027 planning →

Middle East & Africa

Tanzania — VAT: marketplaces deemed the supplier of electronic services

The Finance Act, 2026 (Act No. 2 of 2026) inserts a new section 51(2) into the VAT Act CAP 148 with effect from 1 July 2026: where an electronic service reaches an unregistered person in Mainland Tanzania through an online intermediation service or digital marketplace, the platform operator is deemed the supplier.

The digital-intermediary definition, the new catch-all paragraph (k), and the source →

Tanzania — VAT: monthly withholding statement and split rates

The same Act splits the VAT withholding rate — 15% on goods, 12% on services, with mixed supplies apportioned 3:2 — and adds a dedicated monthly withholding VAT statement due within ten days of the following month, both from 1 July 2026.

The two ten-day clocks, and the apportionment rule →

Tanzania — VAT: new import exemptions

Part II of the VAT Act’s Schedule gains two import exemptions from 1 July 2026: LPG smart meters (HS 9028.10.00) imported by an LPG distributor, and electric-vehicle charging stations (HS 8504.40.00) imported by a licensed charging service provider.

Why both exemptions turn on the importer rather than the goods →

Botswana — VAT: zero-rated foodstuffs list revised

BURS published a public notice on 9 July 2026 setting the revised list of zero-rated foodstuffs under the Value Added Tax (VAT) Act, 2026, which commenced 1 July 2026. Any food item not on the list is taxed at 14%.

The full list, the fresh-produce carve-outs, and the nine-day gap →

Botswana — VAT: remote-services regulations published

The Value Added Tax (Remote Services) Regulations, 2026 (Statutory Instrument No. 74 of 2026), gazetted 29 May 2026, set the operating machinery for non-resident digital-services VAT: scope, registration, returns, invoicing and penalties, with suppliers charging VAT four months after registering.

The four-month clock, the inbound-tourism trap, and the penalty scale →

Asia-Pacific

Sri Lanka — VAT: revised mandatory tax-invoice format

A revised, legally binding VAT tax-invoice format applies from 1 July 2026 under Gazette Extraordinary No. 2481/22, implemented by Circular SEC/2026/E/03. It prescribes a “TAX INVOICE” header, TIN and party details, a structured YYMMM_QQQQ_XXXXX serial, and separate invoice and supply dates.

The full field list, the 40-character serial rule and the RAMIS relaxation →

Nepal — VAT: ride-sharing collection mechanism

Finance Act 2083 added subsection (1kha) to section 7 of the Value Added Tax Act 2052, making the ride-sharing operator collect VAT from affiliated drivers at the time of the transaction. The Inland Revenue Department decided on 2083/03/31 to issue implementing guidelines and published a public notice.

The notice text, and why the guidelines matter more than the subsection →

Americas

United States (Kentucky) — sales tax: economic nexus becomes revenue-only

House Bill 757 (Acts Chapter 161) amends KRS 139.340 so Kentucky’s economic nexus standard for remote retailers and marketplace providers rests on the USD 100,000 sales threshold alone, removing the 200-transaction alternative trigger. Effective 1 August 2026.

Why this shrinks the registered population, and the enactment-route correction →

United States (Kentucky) — sales tax: data brokering becomes taxable

The same bill amends KRS 139.010 to define “data brokering services” and KRS 139.200 to subject them to Kentucky’s 6% sales and use tax from 1 August 2026, excepting state and local government agencies and pre-existing lease or rental agreements.

The classification problem, and when the pre-existing-agreement shield runs out →

Bolivia — VAT: official exchange rate required on foreign-currency invoices

RND N° 102600000026 of 15 July 2026 amends article 25.IX of RND N° 102100000011 so that fiscal documents issued in foreign currency must record the Tipo de Cambio Oficial published by the Banco Central de Bolivia at the transaction date.

The ASFI alternative, the Zona Franca and export carve-outs, and the source →

Bolivia — VAT: late cancellation of fiscal documents

RND N° 102600000025 of 13 July 2026 amends article 38.II of the same resolution to add a route for cancelling fiscal documents after the day-9 deadline, through the taxpayer’s Gerencia Distrital or GRACO.

The split by filing status, the six-month determination window, and the transitional rule →

Chile — VAT: voluntary withholding regime for agricultural services

Resolución Exenta SII N°83 of 23 June 2026 establishes a voluntary regime of full VAT withholding for agricultural support and post-harvest services (activity codes 016100, 016300) and related personnel supply (783000) provided to qualifying agricultural producers.

Who qualifies, the Formulario 2117 route, and the factura de compra mechanics →

Canada (Manitoba) — sales tax: grocery exemption widened

Manitoba extended its Retail Sales Tax exemption to additional grocery food and beverages from 1 July 2026, confirmed in the revision summary to Information Bulletin RST 030.

The five excluded venue types, and why this is a channel test rather than a product test →

Brazil — CBS/IBS: individuals must register for a CNPJ

Under the dual-VAT reform (Lei Complementar nº 214/2025), Receita Federal’s 2026 guidance states that individuals who are CBS and/or IBS taxpayers must register for a CNPJ, solely to facilitate assessment — it does not convert them into a legal entity.

The exact wording, and the decree that later moved the start to 1 January 2027 →

Deadlines on the horizon

Congo-Brazzaville — e-invoicing: SFEC go-live moves to 1 August 2026

The Ministry of Finance confirmed on 30 June 2026 that mandatory go-live of the Système de Facturation Électronique Certifiée, originally set for 1 July 2026, moves to 1 August 2026. From that date, SFEC connection and real-time certified e-invoicing become mandatory for all businesses subject to invoicing obligations.

How the deferral was obtained, and why it buys less runway than it looks →

United Kingdom — VAT: Capital Goods Scheme simplified from 29 July 2026

The Value Added Tax (Amendment) Regulations 2026 (SI 2026/765) remove computers and computer equipment from the Capital Goods Scheme entirely and raise the expenditure threshold for land, buildings and civil engineering works from GBP 250,000 to GBP 600,000, with effect from 29 July 2026.

What happens to expenditure incurred before that date →

France — e-invoicing: DGFiP publishes its start-up guide and a tolerance

DGFiP published a guide pratique de démarrage dated July 2026 for the 1 September 2026 generalisation of mandatory B2B e-invoicing and e-reporting. It confirms the calendar is unchanged and establishes a start-up tolerance for businesses with a documented, active compliance trajectory.

What the tolerance covers, and what it does not →

Themes this week

  1. Enacted text keeps diverging from bill text. Sri Lanka’s Act reversed one proposed threshold cut outright and raised another by two-thirds between bill and passage. Russia’s threshold freeze is at the same stage the Sri Lankan figures were when they were first reported — approved by one chamber, not yet law. The gap between “announced” and “enacted” is where this feed’s errors live.

  2. Marketplaces are becoming the taxpayer. Tanzania now deems the platform operator the supplier of electronic services to unregistered customers, and Botswana’s remote-services regulations set out registration and invoicing mechanics for non-resident suppliers. Both move collection from many small foreign sellers to a few intermediaries.

  3. Compliance mechanics, not rates, dominate. Of the 23 changes, only three are rate movements. The rest are invoice formats, withholding statements, registration identifiers, exchange-rate capture and nexus definitions — changes that land in ERP and invoicing configuration rather than pricing.

  4. E-invoicing dates are being softened rather than moved. Congo-Brazzaville pushed its mandate by a month; France held its date but added an explicit penalty tolerance. Both suggest go-live pressure is being managed through enforcement discretion rather than fresh delays.

All sources captured 20 July 2026.

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