Italy has reduced the VAT rate on works of art, collectibles and antiques to 5% from 1 July 2025, replacing the former 10% rate for imports and sales by authors. The change applies to domestic sales, imports and intra‑Community acquisitions, but is incompatible with the margin scheme for resellers. Operators must adjust invoicing, ledger practices and potentially switch between margin methods to comply with the new regime.

Zimbabwe has increased the standard VAT rate on tourism services from 15% to 15.5% and re‑classified activities and transfers from zero‑rated to standard‑rated, effective 1 January 2026. The move puts pressure on operators with long‑lead bookings, prompting calls for a transitional period and raising compliance costs. The change is expected to reduce Zimbabwe’s competitiveness in the Southern African tourism market.

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 Portuguese Tax Authority (AT) has clarified the rules for input VAT deduction on electric and plug‑in hybrid vehicles in Oficio Circulado n.º 25088. Key points include VAT liability on private use, non‑deductibility of maintenance expenses, and a 50% deduction for bi‑fuel vehicles. These changes affect how companies account for vehicle-related VAT and may require procedural adjustments.

Dutch court rulings in September 2025 declared pension premiums taxable at 21% VAT, but the Minister of Finance has rejected adopting these rulings, maintaining the current VAT-exempt status until a Supreme Court decision. The rulings apply to mandatory sector pension schemes, while voluntary schemes remain unaffected. If the Supreme Court confirms the premiums are taxable, lawmakers may introduce corrective measures.