The European Parliament’s ViDA package introduces mandatory e‑invoicing and near real‑time digital reporting for cross‑border EU transactions from 1 July 2030, requiring the EU electronic invoicing format. Businesses must report transaction data within 10 days of the taxable event, and member states may extend domestic e‑invoicing to before, on, or after that date with transitional periods up to 2035. The initiative aims to harmonise VAT rules, reduce fraud, and lower compliance costs across the EU.

The EU has agreed an interim €3 customs levy for parcels that will take effect on 1 July 2026. Romania and Italy have already implemented national levies of 25 RON (~€5) and €2 respectively for low‑value parcels, while the Netherlands and France remain in proposal stages. The move aims to curb VAT and customs fraud on low‑value e‑commerce shipments.

The OECD has released guidance to help policymakers design real‑time reporting mandates for VAT transactions. The guidance outlines principles for implementing real‑time data submission to tax authorities, a feature increasingly adopted by member states. It aims to standardise reporting requirements and improve compliance.

The EU has abolished the VAT de‑minimis rule, making VAT applicable to all commercial goods. Starting 1 July 2026, a €3 fixed duty per product type will apply to low‑value e‑commerce consignments, with a separate handling fee expected from late 2026 and the €150 duty‑free threshold slated to disappear by mid‑2028. Member states such as Romania have already introduced €5 logistics fees from 1 January 2026.

Bloomberg Tax argues that digital services taxes (DSTs) are ineffective and distort the digital economy, citing low revenue and compliance burdens. The article highlights that several countries—including Canada, India, Malaysia, and France—have moved away from DSTs or are considering alternatives, and it advocates shifting to a VAT framework for digital services.

The European Union’s data supervisor cautions that the EU’s intensified crackdown on VAT fraud could blur the line between data cooperation and law enforcement, potentially undermining data protection. The warning highlights concerns about the balance between anti‑fraud measures and privacy safeguards.

The EU will abolish the EUR 150 customs duty exemption for small parcels from 1 July 2026, replacing it with a fixed EUR 3 duty per item if VAT is paid via IOSS. A Union‑wide customs handling fee will start in November 2026, while several Member States have already introduced national fees from 1 January 2026. Additionally, the EU will incentivise the IOSS mechanism for B2C distance sales from 1 July 2028 and is working to remove the EUR 150 threshold for IOSS.

The European Data Protection Supervisor has warned that the European Commission’s proposal to grant the European Public Prosecutor’s Office and OLAF direct access to VAT information at EU level needs clearer safeguards to prevent blurring administrative and criminal boundaries. The proposal, aimed at tackling VAT fraud costing the EU €12.5‑32.8 bn annually, would amend an EU regulation to centralise access to VAT data for law‑enforcement purposes.

The EU has updated its eInvoicing standard EN 16931, adding B2B extensions, new technical specifications, and a semantic data model. The ViDA initiative now requires near real‑time VAT reporting for intra‑EU transactions, with a new Digital Reporting Requirements (DRR) message that is a VAT report, not an invoice. Businesses aligning early will avoid compliance issues and benefit from streamlined invoicing and reporting.

Maastricht Centre for Taxation has released two free, open‑access books – "VAT in a Day" and "Customs in a Day" – that provide concise introductions to the EU VAT Directive and the Union Customs Code. The publications aim to equip readers with a solid grasp of EU indirect tax law within a single day and are supported by leading Dutch universities and tax firms.

From 1 January 2026, a wave of jurisdictions will tighten enforcement of VAT and GST on cross‑border digital services, expanding scope, tightening registration triggers and integrating data‑driven compliance. The changes focus on stronger enforcement, refined liability rules and closer integration of transaction and payment data, affecting non‑resident digital service providers worldwide.

The EU has granted importers of ammonia and urea a temporary exemption from import duties and CO2 tax, effective 1 January 2026, to keep fertilizers affordable for farmers amid the Mercosur trade negotiations.

The blog outlines confirmed and proposed VAT rate adjustments across several countries effective in 2026, highlighting significant reductions and increases that will impact pricing, invoicing, and compliance for multinational businesses. Key changes include Finland’s 13.5% reduced rate, Germany’s 7% cut for hospitality, and Kazakhstan’s 16% standard rate hike. Businesses are urged to update ERP systems and review contracts to avoid penalties.

The article highlights that businesses can still recover VAT incurred in 2025, with a 4‑5 year domestic window and a 1‑year foreign window. It outlines common recovery gaps—missed foreign claims, incomplete invoices, missed deadlines, and conservative claiming—and promotes a technology‑enabled approach to maximise cash flow. Fintua’s platform automates validation, centralises claim tracking, and reduces audit risk.

The article explains that from July 2028 the EU’s ViDA Single VAT Registration will eliminate the call‑off stock simplification, making cross‑border inventory movements taxable and digitally reportable immediately. It outlines the need for businesses to use OSS or local VAT registrations, highlights the risk of legacy systems, and promotes modern single‑engine platforms such as VATCalc to meet the new compliance requirements.

Bloomberg Tax’s analysis outlines how the EU’s ViDA reform and global digital reporting mandates will reshape VAT compliance in 2026, with several EU member states implementing e‑invoicing and real‑time data transmission ahead of the 2030 deadline. The article highlights the growing role of AI in detecting non‑compliance and the implications of the 2025 CJEU Arcomet ruling on transfer‑pricing adjustments. Businesses are urged to modernize invoicing, automate data flows, and align internal processes to meet the new digital and AI‑driven compliance requirements.

The year 2026 marks a shift in how low‑value goods entering the EU are taxed, with the EU introducing a flat €3 customs duty and a planned €2 handling fee, while several member states enact national measures. These changes aim to streamline customs processing and increase revenue from low‑value e‑commerce parcels.

VATCalc explains how the EU’s 2028 Customs Reform will eliminate the €150 low‑value threshold, expand platform liability, and require real‑time, transaction‑level VAT determination and reporting. The article argues that legacy VAT systems are ill‑suited and that a single, legislative‑coded engine is essential to meet the new harmonised import VAT model across all 27 Member States. It highlights the need for rapid, integrated compliance to avoid penalties and operational risk.

The EU’s VAT in the Digital Age (ViDA) reforms are accelerating the shift toward transaction‑level digital reporting, mandatory e‑invoicing, and real‑time compliance. Legacy ERP tax engines struggle to adapt to the fragmented, rapidly evolving national implementations, while VATCalc’s legislatively‑coded, serverless architecture offers a scalable, integrated solution. Businesses must evaluate whether their tax engine can pivot quickly without repeated reinvestment to meet ViDA’s requirements.

The SME scheme allows small enterprises to sell goods and services without charging VAT to their customers and alleviates their VAT compliance obligations. The scheme is optional and applicable to small enterprises with a total annual turnover of no more than EUR 100,000 in all Member States.