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January 27th

2026 global VAT/GST changes

Date of publication: January 27, 2026

Summary

In 2026, several countries are implementing significant updates to their VAT and GST frameworks to realign revenue priorities, support economic sectors, and modernize tax systems. These changes range from adjustments in standard and reduced VAT rates to broader structural reforms such as shifts from GST to VAT or the introduction of new digital tax measures. The updates reflect each country’s evolving fiscal strategy whether aiming to broaden the tax base, refine sector specific treatments, or enhance compliance in line with contemporary economic demands.
The reduced VAT rate of 14% applied to certain goods and services will be lowered to 13.5%. The change will enter into force on 1 January 2026. Decreased VAT would apply on the selling of the following goods and services:
  • Groceries, food
  • Restaurant and catering services
  • Animal feed including related substances
  • Services relating to physical exercise and cultural activities, sports, admission tickets to events, operation of facilities for sports
  • Books (printed and electronic)
  • Pharmaceuticals
  • Passenger transport
  • Accommodation services
  • The 13.5% VAT rate will also be applied to public broadcasting (previously, VAT on public broadcasting was 10%).
Lithuania will apply two reduced rates of value added tax (VAT) of 5 % and 12 %. Under the amendments, the reduced VAT rate for books and non-periodical publications will be lowered from 9 % to 5 %, while the 9 % reduced VAT rate applied to accommodation, passenger transportation, and arts and cultural events will be increased to 12 %.The Seimas also decided to abolish the reduced VAT rate for district heating, hot water supply, and firewood, thereby increasing the VAT rate on these from 9 to 21 %.
Slovakia’s 2026 VAT changes introduce a 23% standard rate for high‑sugar and high‑salt processed foods, maintain a 19% reduced rate for selected goods and restaurant services, and apply a 5% super‑reduced rate to items such as gluten‑free foods and certain printed publications.
In 2026, Zimbabwe increases its standard VAT rate to 15.5%, removes zero‑rating for key tourism activities, introduces digital services withholding tax, tightens VAT rules on imported services, and implements sector‑specific VAT changes especially in mining to broaden the tax base and stabilize revenue.
Liberia is replacing the current GST system with a new VAT regime. The standard VAT rate will be 15% from July 2026.
From 10 January 2026, Increased VAT rate from 16.5% to 17.5% (Standard VAT).
Bhutan implements Goods and Service Tax (GST) but does not have VAT. GST was introduced and became effective on 1 January 2026, replacing the Sales Tax. The standard GST rate is 5%, with certain HS codes subject to a 0% rate or exempt.

Conclusion

Overall, the 2026 VAT and GST updates reflect each country’s effort to strengthen revenue systems, refine rate structures, and respond to changing economic needs. As these changes take effect, businesses should stay alert to new rates and sector‑specific adjustments to ensure smooth compliance and accurate tax planning.
Recognizing the importance of these updates for our clients, we have already made them available on OneSource Global Trade Content. Clients can check new VAT rate under the given product.

This article applies to:

  • Product: ONESOURCE Global Trade