Japan deemed seller rule AvaTax now supports VAT reassignment for digital platforms under Japan’s new deemed seller rule. Japan’s updated VAT rules require digital platforms to act as the deemed supplier for certain B2C digital services. AvaTax reassigns VAT liability to the platform when all the following conditions are met:
- The seller is headquartered outside Japan.
- The transaction is B2C.
- The service is digital.
If any condition isn’t met, standard VAT rules apply. Customers must set the correct head-office location in nexus to ensure compliance. This change ensures platforms charge and remit the correct VAT in line with Japan’s marketplace rules. VAT group support in Slovenia Starting January 1, 2026, AvaTax supports VAT group treatment in Slovenia. Intra-group supplies are treated as out of scope for VAT purposes. To enable this, customers must configure the POSVATGroupId in nexus settings. This update ensures accurate VAT handling for Slovenia VAT groups and aligns with AvaTax functionality in other EU countries. VAT enhancement for unregistered buyers AvaTax now applies correct VAT on domestic transactions even when the buyer is unregistered. VAT is applied based on the delivery or service location:
- VAT applies to domestic B2C transactions, even if the buyer is unregistered.
- No input VAT recovery is allowed for unregistered buyers.
- When using GoodsPlaceOrServiceRendered, set Transport = None.
This enhancement eliminates zero-tax outcomes and reduces manual adjustments. Enhanced the AvaTax transaction list experience We’ve refreshed the Transactions List experience in Avalara AvaTax. This update is designed to make it faster and easier for customers to review, search, and manage their transactions. The new transaction list experience has:
- Cleaner layout: Key transaction details are easier to scan.
- Improved search and filtering: More intuitive filters make it easy to narrow results by date, document type, status, quick filters, and more.
- Easier navigation: Clearer actions and structure make it simpler to move between summaries and transaction details.