Implications for Businesses and Tax Professionals France is continuing to modernise its tax legislation with the reorganisation of VAT into the “Code des Impositions sur les Biens et Services” (CIBS). The new structure will take effect from 1 September 2026. This reform does not change the substance of VAT rules; rather, it reorganises and clarifies...
At the beginning of 2026, several EU Member States introduced changes to their VAT rates. Here is an overview of the main changes: • Belgium : from 1 March 2026, the reduced VAT rate on hotel accommodation, takeaway food, leisure activities and entertainment services will increase from 6% to 12%; • Czech Republic : since...
On 12 December, the Council of the European Union adopted an emergency measure targeting low-value imports. From 1 July 2026, all parcels valued at less than EUR 150 entering the European Union will be subject to a flat levy of EUR 3. In practice, this measure represents an indirect reinstatement of Customs charges on small...
Since 1 January 2026, all VAT-registered businesses in France carrying out Customs operations are required to use an EORI number based on their company SIREN. Until now, France had allowed EORI numbers to be issued using a company’s SIRET establishment number, meaning that several EORI numbers could exist for the same legal entity. As this...
Until 2025, the VAT special scheme for small enterprises (SME) was only meant for companies carrying out transactions in their home country. This measure allowed a company trading below a…
Key changes by country • Bulgaria o Arrivals : the reporting threshold will increase from BGN 1,700,000 in 2025 to BGN 1,760,000 o Dispatches : the reporting threshold will increase from BGN 2,200,000 to BGN 2,250,000 • Cyprus o Arrivals : the reporting threshold will rise from EUR 350,000 in 2025 to EUR 380,000 o...
The latest VAT Gap report, published by the European Commission on 11 December 2025, reveals that EU Member States failed to collect EUR 128 billion in VAT revenue in 2023. This represents around 9.5% of the VAT theoretically due, highlighting ongoing challenges in VAT collection and the continued need to strengthen tax compliance across the...
Since 1 December 2025, all French Kbis extracts now include the EUID (European Unique Identifier), a single European identification number designed to harmonise company identification across the European Union. This development, implemented in line with Directive 2012/17/EU on the interconnection of business registers, marks an important step towards more reliable and secure legal information for...
From 1 January 2026, Finland will abolish the requirement to submit Intrastat returns for Intra-Community acquisitions of goods. The final return will cover December 2025 and will be due on 16 January 2026. Any corrections will be allowed up until 14 August 2026. In contrast, Intrastat retuns for dispatches of goods to other EU Member...
Since Brexit, selling to private consumers (B2C) in the European Union (EU) has become significantly more complex for UK distance sellers. The days of effortless trade within the Single Market…
In the Autumn Budget presented on 26 November 2025, the UK Government confirmed that the current £135 duty-free limit for low-value imports will be abolished. The change is expected to take effect no later than March 2029. Under the current rules, parcels worth £135 or less can be imported into the UK without customs duties...
CJEU, Case C-101/24, 9 October 2025 With the growth of digital platforms, the question of who is actually supplying electronic services, and therefore who is liable for VAT, is increasingly important. The CJEU’s judgment in Xyrality GmbH (9 October 2025) provides useful clarification. In this case, a German company distributed mobile gaming apps via an...
Clarification for chain transactions The question of which reduced VAT rate applies to prepared food products often raises issues, especially in chain transactions involving several intermediaries. A recent clarification from the French Tax Authorities, published in BOI-RES-TVA-000205 on 19 November 2025, provides practical guidance for affected businesses. In a typical chain transaction, a franchisee sells...
What changes with the Conseil d’Etat ruling of 12 November 2025 Furnished residential rentals are normally exempt from VAT under Article 261 D(4) of the French Tax Code, whether they are long term, seasonal or short term. However, some rentals can fall within the scope of VAT when the services provided start to resemble hotel...
CJEU – Judgment of 13 November 2025, Case C-639/24, Flo Veneer On 13 November 2025, the CJEU issued a judgment on the VAT exemption applicable to intra EU supplies of goods. The case concerned a Croatian company that sold goods to a Slovenian customer under the VAT exemption for intra EU supplies. To support the...
A major shift in EU Customs rules In a press release dated 13 November 2025, the Council of the European Union confirmed that the € 150 customs duty exemption for low value parcels will be removed. The exemption, introduced under Regulation (EC) No 1186/2009, has long been a cornerstone of cross border e commerce. The...
France – threshold maintained for 2025 On 3 November 2025, Law no. 2025 1044 was enacted, reinstating and stabilising the VAT exemption thresholds (“franchise en base”) for micro entrepreneurs and small businesses. This reverses the change initially planned under the 2025 Finance Act, which would have introduced a single € 25,000 threshold for all activities...
Nantes Administrative Court of Appeal – Decision of May 28, 2025 In a decision issued on 28 May 2025 (no. 24NT03194), the Nantes Administrative Court of Appeal ruled that a company cannot exercise its right to deduct VAT if it knew or should have known that its purchases were linked to a VAT fraud scheme....
