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Asia Pacific Updates — Jun 29 – Jul 5, 2026

Australia1 article

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.

Cambodia1 article

Policy Development·Jul 1

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.

China1 article

Policy Development·Jun 30

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.

India1 article

Policy Development·Jul 2

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.

Malaysia1 article

Policy Development·Jul 1

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).

Singapore1 article

Policy Development·Jun 30

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.