Asia Pacific HomeAsia Pacific NewsAsia Pacific Publications

Asia Pacific — GST News

Australia·

GST in Australia: Six Months Into 2026

Australia’s GST framework remained structurally unchanged during the first half of 2026. The GST rate continues to be 10%, with no rate, base or registration threshold changes announced in the 2026–27 Federal Budget. The principal GST developments during the period were technical legislative amendments, updated Australian Taxation Office (ATO) guidance, sector-specific compliance clarification, and continued enforcement activity against GST fraud.

India·

GST in India: Six Months Into 2026 Update

India’s GST framework in the first half of 2026 was shaped principally by the implementation of the rate rationalisation approved at the 56th GST Council meeting of 3 September 2025 and effective from 22 September 2025, and by further amendments introduced in the Union Budget 2026-27. Additional developments during the period include the Supreme Court’s ruling on online real-money gaming, changes to the GST treatment of tobacco products, continued expansion of digital compliance measures, and operational concerns relating to refund delays and input tax credit (ITC) disputes.

Cambodia·

VAT in Cambodia: Six Months Into 2026

Cambodia’s VAT agenda in the first half of 2026 has been driven almost entirely by the government’s response to rising global commodity prices. Three distinct measures — a food VAT exemption running to 2028, an emergency fuel VAT cut in March, and a further deepening of that cut in April — each follow the same structural logic: the state absorbs the VAT liability, allowing businesses to invoice at the reduced or zero effective rate while the General Department of Taxation (GDT) covers the difference. Alongside these relief measures, the GDT launched a new online platform to streamline the process of requesting the state-borne VAT certificates these incentives require. Together the developments reflect a tax administration that is using VAT as an active fiscal tool to manage inflation and cost-of-living pressures, rather than as a stable revenue base.

Malaysia·

Sales and Service Tax in Malaysia: Six Months Into 2026

The first half of 2026 was marked by targeted changes to Malaysia’s Sales and Service Tax (SST) regime and continued implementation of the mandatory MyInvois e-invoicing system. The Government introduced relief measures affecting rental and leasing services, construction, agricultural inputs and SMEs, while Phase 4 of the e-invoicing rollout commenced on 1 January 2026. During the period, the Ministry of Finance also reaffirmed that Malaysia will continue operating the SST system and has no plans to reintroduce the Goods and Services Tax (GST).

China·

VAT in China: Six Month Into 2026 - China’s VAT Law Enters into Force

The principal VAT development during the first half of 2026 was the entry into force of the Value-Added Tax Law of the People’s Republic of China and its Implementation Regulations on 1 January 2026. The new legislation replaces the Provisional VAT Regulations that had governed the system since 1994 and establishes, for the first time, a statutory framework for China’s VAT regime.

Singapore·

GST in Singapore: Six Months Into 2026 – InvoiceNow Rollout Marks the Next Phase of GST Administration

The principal GST development during the first half of 2026 was the announcement of the phased expansion of Singapore’s GST InvoiceNow requirement to all GST-registered businesses between 2028 and 2031. The first mandatory phase, applying to new voluntary GST registrants, commenced on 1 April 2026. Other developments included updated IRAS guidance in several technical areas and enforcement activity relating to fraudulent GST refund claims.

Bangladesh·

VAT in Bangladesh - 6 Months Into 2026. Digitisation, Base Expansion and the IMF.

Bangladesh entered 2026 in a difficult fiscal position. The National Board of Revenue (NBR) had closed FY25 with a record shortfall of approximately Tk 92,625 crore against its revised target, and the country’s tax-to-GDP ratio slid to around 6.5–6.8%, one of the lowest in the world for an economy of comparable size. Against that backdrop, the first half of 2026 has been dominated by three parallel processes: the rapid digitisation of tax administration through the eVAT platform, a major restructuring of the VAT base in the FY2026-27 budget, and a contested renegotiation of the terms of IMF support that placed the uniform 15% VAT reform at the centre of international attention.

Japan·

Japan’s Consumption Tax in 2026: E-Commerce Reform Takes Shape While Food Tax Cuts Remain Under Debate

Six months into 2026, the most significant change to Japan’s consumption tax system is not the highly publicized debate over food-tax relief. Instead, it is a structural reform that brings low-value cross-border e-commerce more fully into Japan’s tax net and shifts collection responsibility toward foreign sellers and digital platforms. Alongside that reform, Japan is overhauling its tax-free shopping system for tourists and continuing to debate a temporary reduction in the reduced consumption tax rate on food. Of the three developments, only the e-commerce reform is already fixed in law with a clear implementation timetable.

Sri Lanka·

Sri Lanka Approves New VAT Invoice Format from July 2026

Sri Lanka has approved a new, more detailed VAT invoice format requiring additional mandatory fields including strict invoice numbering, telephone numbers, and payment methods.

Sri Lanka·

Sri Lanka Launches National E-Invoicing System for VAT with Phased Rollout Through 2026

Sri Lanka's Inland Revenue Department begins rolling out a national e-invoicing system for VAT under the 2026 Budget, targeting export-oriented businesses first before expanding to all VAT-registered persons.

New Zealand·

New Zealand IRD Consults on GST Rules for Unincorporated Bodies

Inland Revenue releases draft guidance on GST treatment of partnerships, joint ventures, trusts and other unincorporated arrangements to help determine applicable tax rules.

Vietnam·

Vietnam Tax Department Tightens VAT Compliance Framework as Digital Invoice and Refund Rules Enter New Phase

Vietnam’s Tax Department has issued comprehensive guidance clarifying how businesses must comply with the country’s rapidly evolving value-added tax (VAT) regime, signaling a stricter approach to VAT refunds, invoice management, and tax declaration corrections as authorities continue implementing major reforms introduced under the 2024 VAT Law.

Australia·

Australian Government Moves to Make eInvoicing the Default for Federal Procurement

Non-Corporate Commonwealth Entities must ensure at least 30% of invoices received via Peppol network from July 2026, with full automation required by December 2026.

Australia·

Australia Clarifies GST Rules for Cross-Border Business Transactions

The Australian Taxation Office has released updated guidance clarifying GST reverse charge obligations for cross-border business-to-business purchases.

Australia·

Australia Clarifies GST Exemption Limits for Cross-Border Service Supplies

ATO ruling explains when GST-free status applies to supplies made to non-residents but provided to entities in Australia, with new exemptions for business recipients.

Vietnam·

Vietnam Clarifies VAT on Compensation Payments Outside Supply of Goods or Services

Vietnam's tax authorities confirm that compensation payments not related to the sale of goods or services are not subject to VAT and do not require VAT invoicing under Official Letter No. 1831/CT-CS.

Newsletter

Weekly VAT updates in your inbox

Legislation, court rulings and compliance alerts across all jurisdictions.

Asia Pacific Weekly Updates — Past Issues

2026
All 2026 →
Jul 6 – Jul 12, 20266 articlesJun 29 – Jul 5, 20263 articlesMay 11 – May 17, 20264 articlesApr 6 – Apr 12, 20261 article