Global VAT and Sales tax rules continue to change rapidly across global markets, with tax authorities placing greater focus on digital compliance, reporting transparency and cross-border enforcement. Below is a roundup of some of the latest VAT and sales tax updates businesses should have on their radar.
France: e-invoicing pilot live and enforcement guidance issued ahead of mandatory e-invoicing requirements for large and mid-sized businesses. Updates issued May 2026.
EU: Member States continue publishing ViDA implementation roadmaps ahead of upcoming digital reporting and platform economy requirements. Updates issued May 2026.
Belgium: VAT chain reform Phase 2 introduced, replacing the existing VAT credits/debts account with a VAT provisions account. Effective 1 May 2026.
Iceland: temporary fuel VAT reduction from 24% to 11% introduced as part of inflation relief measures. Effective 1 May to 31 August 2026.
Ireland: restaurant and catering VAT reduced to 9%; accommodation remains at 13.5%. Effective 1 July 2026.
Croatia: 5% reduced VAT rate on natural gas, district heating and certain wood fuel products extended. Effective until 31 March 2027.
Finland: reduced VAT rate lowered from 14% to 13.5% across food, transport, culture and sports sectors. Effective 2026.
Lithuania: reduced VAT structure revised, with most reduced rates increasing from 9% to 12% while select goods retain the 5% rate. Effective 2026.
Germany: permanent 7% VAT rate confirmed for restaurant and catering services. Effective January 2026.
Netherlands: accommodation VAT increased from 9% to the standard 21% rate. Effective 2026.
Slovakia: VAT on high-sugar and high-salt foods increased from 19% to 23%. Effective 2026.
Austria: feminine hygiene products and contraceptives moved to zero-rated VAT treatment. Effective 2026.
Romania: standard VAT rate increased from 19% to 21%; reduced 5% and 9% rates consolidated into a single 11% rate. Effective 2026.
