EU member states are pushing for a €2 customs handling fee on low‑value parcels (below €150) to take effect on 1 July 2026, ahead of the planned 1 November 2026 date. An interim €3 customs levy will also apply from 1 July 2026 until March 2028, while the €150 duty threshold is slated for removal under the 2028 customs reform. The fee could be reduced to €0.50 for importers registered with the Trust and Check Trader scheme.

The European Court of Justice issued three rulings on 12 March 2026 that clarified VAT deduction rights across the EU. The decisions confirmed that Spain can maintain its entertainment expense restrictions under Article 176, that late invoices do not preclude deductions if claimed within the limitation period, and that technical failures in electronic refund transmission cannot cancel refund claims. These rulings reinforce that VAT rights cannot be undermined by excessive formalism or administrative shortcomings.

EN 16931‑1, the EU e‑invoicing standard, is being updated to a mid‑2026 release that expands B2B functionality and aligns with the ViDA initiative. The revision is not backward compatible, requiring migration for existing version 3 implementations, and will be formally approved in late January 2026 with publication concluding within six months. Key national roll‑outs include Germany’s XRechnung 4.0 and France’s CTC extensions.

Bloomberg Tax’s commentary examines the European Commission’s proposal to grant EU anti‑fraud bodies access to national VAT data, a move aimed at closing the €128 billion annual VAT gap. The article highlights the debate over jurisdiction and the balance between cross‑border enforcement and national sovereignty.

The EU is set to overhaul its e‑commerce customs regime, abolishing the <EUR 150 exemption on July 1 2026 and replacing it with a flat EUR 3 fee per product. From November 1 2026 a EUR 2 handling fee will apply to all distance‑sale goods, while platforms will become deemed importers responsible for duties, VAT and compliance. A new customs data hub is slated for 2028 and dedicated e‑commerce warehouses are encouraged to mitigate the impact.

The CJEU reaffirmed that substantive VAT exemption conditions prevail over formalities, with three 2025 judgments clarifying that missing Article 45a documents, incomplete export paperwork, or absent customs steps do not automatically deny exemptions if fraud is absent. The rulings reinforce fiscal neutrality and outline narrow exceptions where formal non‑compliance can defeat an exemption.

The European Parliament’s Committee on Economic and Monetary Affairs released a draft report on 4 February 2026 urging the European Commission to overhaul the outdated 1977 VAT exemption for financial services. The report proposes taxing identifiable charges such as fees and commissions, introduces coordinated temporary windfall taxes on exceptional bank profits, and calls for an alternative to the withdrawn EU-wide Financial Transaction Tax.

The Peppol network will enforce a mandatory switch from G2 to G3 digital certificates on 1 April 2026. Failure to migrate will revoke the G2 trust chain and disconnect Access Points from the network. OpenPeppol has issued detailed guidelines to help providers become dual‑capable during the transition.

The blog explains how embedding tax automation into marketplace platforms can unlock revenue, reduce risk, and support compliance across multiple jurisdictions. It outlines platform reporting obligations in the EU (DAC7), UK, Mexico, Canada, Australia, and other countries, and highlights the benefits of integrated tax services for sellers and platform operators.

The EU will eliminate the €150 customs and VAT threshold for low‑value consignments from March 2028, making e‑commerce platforms the de‑emed importers responsible for all duties and VAT. A single EU Customs Authority and a Customs Data Hub will be established to centralise and simplify customs procedures, with the new regime expected to raise €1 billion in revenue annually.

The article examines the Tour Operators’ Margin Scheme (TOMS), highlighting its intended simplification for travel agents and the significant challenges it poses, such as blocked input VAT and inconsistent application across EU Member States. It discusses the scheme’s impact on profitability, competitive distortions, and the European Commission’s public consultation on reforms launched in 2025.

On 13 February 2026 CEN approved updates to EN 16931‑1, modernising the standard for B2B e‑invoicing and ViDA‑driven reporting across the EU. The revision adds mandatory fields such as IBAN details, early‑payment discount and late‑payment charge indicators, and clarifies syntax bindings to UBL and UN/CEFACT CII, requiring businesses to adapt validation and mapping processes for automated compliance.

The article argues that compliance with country mandates should be seen as a baseline, not the ultimate goal. It emphasizes that true invoicing success lies in data governance and ensuring invoices are accurate, fraud‑free, and defensible in accounting, rather than merely passing XML validation. The author highlights mandates in Poland, France, Belgium, Germany, and Saudi Arabia, and calls for a holistic approach to tax determination and data integrity.

This article explains the technical intricacies of the Peppol discovery process, detailing how participant identifiers are hashed and resolved via DNS to Service Metadata Publishers (SMPs). It highlights key components such as the Service Metadata Locator (SML), SMP metadata signing, and the lack of fallback routing, underscoring the importance of correct configuration for reliable e‑invoicing.

The February 2026 Global VAT Guide provides a concise overview of recent VAT and e‑invoicing developments across Europe, the EU, Japan and Mexico. Key updates include Belgium’s new place‑of‑supply rules for virtual events, Croatia’s extended VAT return deadline, the Czech Republic’s InstatEvo transition, a temporary €3 customs duty on low‑value goods in the EU, and changes to Belgium’s federal tax payment BIC code.

The article reviews recent EU Court of Justice rulings that clarify the VAT treatment of transfer‑pricing adjustments in intragroup transactions. It explains that payments calculated under OECD methods may be treated as VAT‑subjected remuneration for services, while unilateral profit allocations are generally outside VAT scope. The piece also highlights the pending Stellantis Portugal opinion and the need for businesses to document services and support evidence to secure VAT recoverability.

The OECD’s 2026 report outlines guidance on Digital Continuous Transactional Reporting (DCTR), urging jurisdictions to adopt real‑time VAT transaction reporting and structured e‑invoicing. It highlights the EU’s ViDA initiative, slated for rollout by 2030, and the requirement for intra‑EU invoicing interoperability by 2035. Businesses are advised to modernise ERP and billing systems, improve data quality, and strengthen security to meet the forthcoming digital compliance landscape.

The article discusses the EU’s longstanding VAT exemption for financial services, noting that the exemption was introduced in 1977 and remains in place across EU member states, Iceland, and the UK. It reviews the European Parliament’s February 2026 draft report, which calls for modernising the tax framework, highlights the 91 sector‑specific taxes that have emerged, and explores options such as abolishing the exemption for B2B services or differentiating between B2B and B2C. The piece underscores the hidden costs, market distortions, and competitiveness concerns that the current exemption creates.

CEN approved an updated EN 16931‑1 e‑invoicing standard on 13 February 2026, adding new mandatory fields for B2B transactions and aligning with the July 2030 Digital Reporting Requirements. The revision supports both B2B and B2G use, enabling ViDA users to comply without costly system rebuilds.

This guide explains the EU-wide €10,000 distance‑selling threshold for cross‑border B2C sales and how it is affected by multi‑country storage. It also covers the 2025 SME VAT exemption scheme and the implications for local VAT registration and OSS use when goods are stored in multiple EU countries.