The UK Treasury confirmed mandatory e-invoicing for all VAT invoices starting April 1, 2029, applying to business-to-business and business-to-government transactions. The government selected a decentralized 4-corner model, likely using the Peppol network, allowing businesses to exchange structured invoices through approved networks without a central government platform. Real-time reporting will not be required in 2029 but may be added later. Stakeholder collaboration begins January 2026, with a detailed implementation roadmap due at Budget 2026 in November. Paper invoices and PDF files will no longer qualify as valid VAT invoices.

The bottom line: UK businesses must assess their ERP and billing systems for Peppol and EN16931 compliance. The government estimates e-invoicing cuts costs by 60% to 80% and reduces late payments by 20%, saving small businesses approximately £11,300 annually.

Switzerland postponed its planned VAT rate increase from January 2026 to what is now most likely January 2028. The standard rate was set to rise from 8.1% to 8.8%. The 0.7% increase was designed to generate CHF 4.2 billion annually to fund a 13th monthly pension payment for retirees. The delay pushes the parliamentary approval deadline and required public referendum vote further into the future. ‍

The bottom line: Businesses operating in Switzerland now have additional time to prepare for the rate changes. Despite this postponement and a previous increase in January 2024 (from 7.7% to 8.1%), Switzerland continues to maintain the lowest VAT rate among major European countries.

Belgium is debating a proposal to increase its standard VAT rate from 21% to 22% as part of broader budget reforms. The proposal also includes merging the current 6% and 12% reduced rates into a single 9% rate, expanding 0% VAT coverage to essential goods like fresh produce, medicines, diapers, and public transport. 

The bottom line: The 1% increase would generate substantial revenue for Belgium but will raise prices on goods and services subject to the standard rate. The proposal has triggered political opposition within the ruling coalition, and no implementation date has been set as lawmakers work to balance fiscal needs with social concerns.

Tennessee's Department of Revenue ruled that subscription fees for mobile healthcare solutions are subject to sales tax when software is the transaction's primary purpose. The ruling examined a heart health management subscription that includes a mobile app for tracking blood pressure and activity, a Bluetooth monitor, and technical support. The state determined the entire subscription is taxable because software performs the tracking and guidance, not medical professionals. These subscriptions do not qualify as exempt "information or data processing services" because the app tracks participant data rather than converting raw data into machine-readable form.

The bottom line: Healthcare technology companies selling subscription-based monitoring solutions in Tennessee must collect sales tax on the full subscription price, including bundled physical devices. Companies cannot separately itemize service components to reduce tax obligations unless those services are the primary transaction purpose.

Chicago City Council introduced an ordinance establishing a Social Media Amusement Tax targeting platforms with more than 100,000 Chicago users. The tax would charge social media businesses $0.50 per Chicago consumer above the 100,000-user threshold, with each calendar month counting as a separate reporting period. The proposal defines social media businesses as for-profit entities that provide social media access and collect consumer data for commercial purposes. News organizations, search engines, internet service providers, and streaming services without user-generated content are excluded from the tax.

The bottom line: Revenue from this tax would fund a new Protecting Care Fund for mental and behavioral health operations. The ordinance faces legal challenges because it targets only online social media platforms while exempting non-digital businesses that also collect and sell consumer data, creating potential violations of the Internet Tax Freedom Act. If passed, the tax takes effect January 1, 2026.

Comcast filed a lawsuit challenging Washington's new digital advertising tax, arguing the law violates the federal Internet Tax Freedom Act (ITFA). The tax requires sales tax collection on internet-based advertising services while exempting traditional media like newspapers, television, radio, billboards, and stadium naming rights. The law faces opposition from streaming giants Netflix, Paramount+, Peacock, and Disney. 

The bottom line: Businesses providing digital advertising services in Washington should prepare for the October 1, 2025 implementation date while monitoring this legal challenge. If Comcast wins, the state loses $475 million in projected tax revenue over four years. The Department of Revenue will release interim guidance within two weeks for taxpayers to follow during the legal proceedings.