Compliance
OECD 2026 Reforms: Digital Services, VAT and Country-by-Country Reporting Explained
Across multiple countries, recent OECD data shows sweeping changes to VAT on digital services, mandatory electronic invoices, and new cross-border reporting rules impacting non-resident suppliers.
By NomadicTax Research Team • 6-8 min read • September 9, 2026
## OECD’s Key Findings in Tax Policy Reforms 2026
In its report published **8 September 2026**, the OECD outlines critical policy updates across its member and partner economies, many of which impact global businesses and digital commerce.([oecd.org](https://www.oecd.org/en/publications/tax-policy-reforms-2026_43d18a55-en/full-report/tax-policy-reforms_82075677.html?utm_source=openai))
### Top Reforms With Cross-Border Impact
- **Digital Service Taxes & VAT for Non-Resident Suppliers**: Turkey reduced its DST rate to **5 % in 2026, then further to 2.5 % in 2027**. Meanwhile, Mauritius introduced a **15 % VAT registration requirement** for foreign suppliers of digital and electronic services starting January 2026.([oecd.org](https://www.oecd.org/en/publications/tax-policy-reforms-2026_43d18a55-en/full-report/tax-policy-reforms_82075677.html?utm_source=openai))
- **VAT on Low-Value Imported Goods & Online Sales**: Growing number of economies now **collect VAT at point of sale for low-value goods**, especially from foreign sellers via online marketplaces. Chile and Japan serve as notable examples; Chile’s reforms took effect in late 2025, while Japan’s pending changes are set for April 2028.([oecd.org](https://www.oecd.org/en/publications/tax-policy-reforms-2026_43d18a55-en/full-report/tax-policy-reforms_82075677.html?utm_source=openai))
- **Mandatory E-Invoicing & Transaction Reporting**: In France, mandatory domestic B2B electronic invoicing for large and medium-sized enterprises starts September 2026; for SMEs, September 2027. Similar roll-outs are occurring in other jurisdictions.([oecd.org](https://www.oecd.org/en/publications/tax-policy-reforms-2026_43d18a55-en/full-report/tax-policy-reforms_82075677.html?utm_source=openai))
## Tax Planning Implications for Digital Businesses
- **Register for VAT early** where required in foreign jurisdictions, even as a non-resident supplier, to avoid penalties or missed revenues.
- **Optimize marketplace participation**: If the platform is liable for VAT collection (“full liability”/“deemed supplier”), assess contract terms and pricing.
- **Invest in digital infrastructure**: Systems for e-invoicing, data reporting, platform compliance will become mandatory in more countries.
- **Track law timing closely**: There are staggered effective dates—such as France’s phased e-invoice mandate. Businesses must monitor when these rules hit their category and jurisdiction.
## Compliance Takeaways
- Ensure your products or services are properly classified; digital/intangible supplies often have specific VAT or DST treatment.
- Maintain documentation proving your business's substance in required jurisdictions in order to access safe harbours or preferential rates.
- Review contracts with service providers and platforms to understand who bears VAT liability and collection responsibilities.
## Case Example
A digital tool provider based in Country A supplies software subscriptions to clients in France.
- If considered B2C, the company must register for French VAT and collect it from customers.
- From September 2026, if the vendor is a medium-sized enterprise, it must also use France’s mandatory e-invoicing system for domestic B2B transactions.
- Failing to meet these obligations could lead to penalties, late filing risk, or loss of deduction elements.
### Final Takeaway
OECD’s 2026 reforms show that cross-border digital commerce is under increasing regulatory pressure—where VAT, electronic reporting, and platform responsibilities are key battlegrounds. Proactive compliance, structuring with VAT in mind, and leveraging safe harbour or domestic exemptions will be vital for businesses operating globally.